Historic India-UK Free Trade Agreement Promises Economic Boom

India and the United Kingdom have announced the successful conclusion of a landmark Free Trade Agreement aimed at strengthening economic ties between the two nations. This agreement, a significant diplomatic achievement, promises to make British Scotch whiskey and cars more affordable in India while offering Indian exports a competitive edge in the UK market.

Prime Ministers Keir Starmer and Narendra Modi spearheaded the historic accord, which reduces tariffs on UK liquor to 75% initially, with a further reduction to 40% over a decade. Similarly, automotive tariffs will see a dramatic decrease to 10%, subject to quotas. For India, tariff elimination spans approximately 99% of products, opening vast opportunities to enhance bilateral trade, which is anticipated to double by 2030.

The FTA is projected to contribute an additional GBP 4.8 billion annually to the British economy by 2040, while India's economy benefits from reduced trade barriers. Meanwhile, talks on a bilateral investment treaty continue. The treaty also encompasses chapters addressing anti-corruption, labor rights, and consumer protections, underscoring the comprehensive scope of this agreement.

(With inputs from agencies.)