Key Takeaways:
✅ Boost for Indian sectors: Textiles, gems & jewellery, and MSMEs to gain significantly.
✅ Cheaper imports: Medical devices and aircraft parts to become more affordable.
✅ Economic surge: Bilateral trade projected to rise by 39%, hitting $34 billion annually.
Historic India-UK Trade Deal: A Win for Textiles, Gems & Affordable Healthcare
In a major economic milestone, India and the United Kingdom have officially sealed a comprehensive Free Trade Agreement (FTA) after years of negotiations. Prime Minister Narendra Modi, speaking at the signing ceremony in London, emphasized that the pact goes beyond mere economic gains—it’s a “blueprint for shared prosperity.”
Key Sectors Set to Benefit
The deal is expected to provide a significant boost to India’s textile, gems & jewellery, and MSME sectors. Additionally, Indian consumers stand to benefit from reduced costs on critical imports like medical devices and aircraft parts. PM Modi highlighted that the agreement, coupled with the Double Taxation Convention, will enhance ease of doing business, lower operational costs, and foster confidence in cross-border trade.
Economic Impact & Vision 2035
According to UK government estimates, the FTA could elevate bilateral trade by 39%, translating to an annual trade value of $34 billion by 2040—up from the current $21 billion. Beyond commerce, the two nations unveiled “Vision 2035,” a strategic roadmap to deepen collaboration in technology, defence, climate action, and education. Notably, six UK universities, including the University of Southampton, are set to establish campuses in India.
Defence & Global Stability
A dedicated defence industrial roadmap has also been introduced to strengthen security partnerships. PM Modi underscored the importance of joint innovation in AI, semiconductors, and cybersecurity. On the geopolitical front, both nations reaffirmed their commitment to stability in the Indo-Pacific and called for peaceful resolutions in Ukraine and West Asia.
What’s in It for the UK?
The UK gains access to India’s vast market, including phased openings for British luxury cars and whisky. India’s Commerce Ministry confirmed that 99% of tariff lines will see elimination, ensuring near-total trade coverage.
With this deal, India and the UK are not just bridging economies but also shaping a future of collaborative growth—one that balances commerce with cutting-edge innovation.
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