'Plan For Shared Prosperity': PM Modi Hails India-UK Free Trade Agreement

This free trade agreement (FTA) will increase annual bilateral trade by about $34 billion. Under this historic FTA, India will cut duties on 90 percent of UK products, while the UK will reduce duties on 99 percent of India's exports.

UK Prime Minister Keir Starmer with PM Narendra Modi. (Photo: @narendramodi/x)

India and the United Kingdom on Thursday signed a landmark Free Trade Agreement (FTA). The deal was signed in the presence of Prime Ministers Narendra Modi and Keir Starmer.

Hailing the deal, British Prime Minister Keir Starmer said the agreement will bring significant benefits to both countries. Prime Minister Starmer added that the trade deal will boost wages, raise living standards and put more money in the pockets of working people.

"It is a deal that will bring huge benefits to both of our countries, boosting wages, raising living standards and putting more money in the pockets of working people. It is good for jobs, it is good for business, cutting tariffs and making trade cheaper, quicker and easier," UK PM Keir Starmer said.

Prime Minister Modi also hailed the agreement and described it as “a historic day' in India-UK relations.

"Today marks a historic day in our relations. I am delighted that after the hard work of several years, today our two nations have signed the Comprehensive Economic and Trade Agreement," PM Modi said. 

Prime Minister Modi said that the Free Trade Agreement between India and the United Kingdom goes beyond mere economic cooperation; it lays the foundation for shared prosperity.

"This Agreement is not just an economic agreement but also the plan for a shared prosperity. On one side, Indian textile, footwear, gems and jewellery, seafood and engineering goods will get better market access in the UK. New opportunities will emerge in the UK market for India's agricultural produce and processed food industry," PM Modi said.

Prime Minister Modi said that this agreement will provide Indian consumers and industries access to products manufactured in the UK, including medical devices, at more reasonable and affordable prices.

"This agreement will especially benefit Indian youth, farmers, fishermen and MSME sector. On the other hand, for the people of India and industry, products made in UK like medical devices will be available at reasonable and affordable prices," PM Modi said. 

As part of the landmark FTA, India will cut tariffs on 90 per cent of the UK products, while the UK will reduce duties on 99 per cent of Indian exports, significantly cutting tariff lines and regulatory processes across sectors.

"Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country," said Starmer in a post on X.

The pact is set to make imported goods like Scotch whisky, gin, luxury cars, cosmetics, and medical devices more affordable for Indian consumers.

With the FTA being materialised, Indian farm products will get tariff parity with major European exporters like Germany. Zero duties on textiles and leather are expected to boost India’s competitiveness among regional peers such as Bangladesh and Cambodia.

India’s leather sector is projected to gain an additional market share of 5 per cent in the UK within the next two years.

Similarly, projections show that electronics and engineering exports are likely to double by 2030, while gems and jewellery exports are likely to double (from the current $941 million) in the next three years.

Officials estimate the deal will increase UK exports to India by almost 60 per cent over the long term.

(With IANS Inputs)