Key Takeaways:
✔ Historic Deal: The India-UK FTA is set to be signed, marking a major milestone in trade relations.
✔ Economic Boost: Expected to create jobs, cut tariffs, and open new markets for businesses in both nations.
✔ Strategic Move: India’s first major trade pact with a Western country since exiting RCEP in 2019.
PM Modi Arrives in UK Ahead of Historic Trade Deal Signing
Prime Minister Narendra Modi landed in London early Thursday, setting the stage for the formal signing of a long-anticipated Free Trade Agreement (FTA) between India and the United Kingdom. The agreement, described as a “landmark achievement” by British Prime Minister Keir Starmer, is expected to redefine economic ties between the two nations.
Upon his arrival, PM Modi was warmly welcomed by members of the Indian diaspora. Sharing his gratitude on social media, he wrote, “Touched by the warm welcome from the Indian community in the UK. Their affection and passion towards India’s progress is truly heartening.”
Why This Visit Matters
The India-UK FTA, announced earlier this year after three years of negotiations, is finally set to be inked. The deal comes at a crucial time—following political shifts in Britain, including Labour’s recent election victory. PM Starmer emphasized that the agreement would be a “major win for Britain,” generating thousands of jobs and stimulating economic growth nationwide.
“We’re putting more money in the pockets of hardworking Brits and helping families with the cost of living,” Starmer stated. “This deal unlocks new opportunities for businesses and drives growth across the UK.”
Key Benefits of the FTA
For India, this marks its first major trade pact with a Western nation since withdrawing from the China-led RCEP in 2019. The agreement ensures:
- Tariff Reductions: Nearly 99% of Indian tariff lines will see duty elimination, covering almost 100% of trade value.
- Boost for Key Sectors: Indian textiles and leather exports are expected to surge, while British automakers and whisky producers gain easier access to India’s market.
- Social Security Pact: A Double Contribution Convention Agreement will protect workers’ benefits in both countries.
British businesses, meanwhile, stand to benefit from lower tariffs on exports like cars, medical devices, and premium Scotch whisky—with whisky duties slashed from 150% to 75% immediately, eventually dropping to 40% over ten years.
Major Investments & Future Prospects
The UK government has already secured nearly £6 billion in new investments, with companies like Airbus and Rolls-Royce expanding operations in India. Airbus is set to begin aircraft deliveries to India, many powered by Rolls-Royce engines.
As both nations prepare to finalize the deal, the focus remains on long-term economic growth, job creation, and stronger diplomatic ties. PM Modi’s visit underscores India’s commitment to global partnerships—and this FTA could be just the beginning.
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