India-UK FTA: A New Dawn for Global Trade Partnerships

The recent finalization of the Free Trade Agreement (FTA) between India and the United Kingdom is poised to deliver substantial economic benefits for both nations. A Bank of Baroda report highlights that while the UK is not a primary trading partner for India currently, the FTA marks a pivotal advancement in trade relations with key global economies, such as the United States and the European Union.

This agreement is heralded as comprehensive and forward-looking, aligning with India's 'Viksit Bharat' agenda aiming for developed nation status by 2047. One remarkable feature is the wide-ranging market access it provides, eliminating tariffs on 99 percent of the tariff lines, thus potentially boosting Indian exports significantly.

The agreement promises to enhance India's economic outreach, reducing tariffs on 90 percent of imports from the UK and benefiting the UK's automotive sector by lowering tariffs on vehicles. Both nations predict increased GDP and wage growth, with India gaining substantial export opportunities and aligning with the UK's shift to electric mobility.

(With inputs from agencies.)