India-UK Trade Agreement Set to Transform Economic Ties

The India-UK Free Trade Agreement, signed by Prime Ministers Narendra Modi and Keir Starmer, marks a significant reduction in trade tariffs, decreasing them from 15% to 3%. Speaking at the British Parliament, UK Business and Trade Secretary Jonathan Reynolds emphasized its potential to enhance bilateral trade and bolster economic confidence.

Reynolds outlined that the deal, formally known as the India-UK Comprehensive Economic and Trade Agreement (CETA), is awaiting ratification under the UK's Constitutional Reform and Governance Act 2010. The agreement is expected to boost bilateral trade by 25.5 billion pounds, increase the UK GDP by 4.8 billion pounds, and elevate wages by 2.2 billion pounds annually.

The CETA will unlock unprecedented access to India's procurement market for UK service providers, aiming to make transactions faster and cheaper. As India's economy grows, the deal promises new opportunities for British industries, particularly benefitting regions like the West Midlands and the North West of England. The agreement, set to potentially double bilateral trade to 120 billion USD by 2030, awaits ratification by UK Parliament, following established procedures.

(With inputs from agencies.)