India-UK Trade Deal: A Post-Brexit Milestone

The India-UK Free Trade Agreement has been hailed by the British media as a post-Brexit triumph, anticipated to boost bilateral trade by USD 34 billion annually. The deal was signed by Commerce Minister Piyush Goyal and UK Secretary Jonathan Reynolds, underlining its strategic importance to both nations.

The agreement, witnessed by Prime Ministers Narendra Modi and Keir Starmer, seeks to further deepen economic ties, reinforcing the bond as India's GDP surpasses Britain's. It also includes provisions like reducing Indian tariffs on British goods from 15% to 3%, potentially enhancing the UK GDP by GBP 5 billion by 2040.

However, some sectors, notably the automotive industry, expressed concerns over tariff rates and sales caps until 2046. Despite these challenges, the deal's overall prospects remain favorable, with analysts underscoring the long-term benefits of strengthened partnerships.

(With inputs from agencies.)