India and UK Seal Historic Free Trade Deal, Bolstering Economic Ties

The U.S.-India Strategic Partnership Forum (USISPF) has applauded the finalization of a free trade agreement between India and the United Kingdom, marking a significant step in strengthening economic ties between the two nations. Describing it as a milestone, USISPF emphasized the shared commitment to fostering inclusive growth.

Optimism remains high for ongoing U.S.-India trade negotiations toward a Bilateral Trade Agreement. USISPF states the agreement could open new investment avenues, deepen economic relations, and enhance people-to-people ties between the nations. Recent exchanges suggest a commitment to finalizing a reciprocal tariff deal before advancing Bilateral Trade Agreement discussions.

Indian Prime Minister Narendra Modi hailed the new Free Trade Agreement at the India@2047 Summit, underscoring its role in economic cooperation with the UK's significant open market. Modi's dialogue with UK Prime Minister Keir Starmer played a role in finalizing the deal, promising new opportunities, particularly for India's MSME sector.

This ambitious Free Trade Agreement, coupled with a Double Contribution Convention, opens massive export opportunities for labor-intensive sectors and promises to boost growth and job creation across India. The Commerce and Industry Ministry highlights zero duty for 99% of Indian exports and substantial benefits for sectors like IT and financial services.

(With inputs from agencies.)