India-UK Free Trade Deal Gets Cabinet Nod, To Be Signed During PM Modi’s London Visit
The FTA between India and the UK was sealed in May this year and is the biggest FTA the UK has done since leaving the European Union.
The agreement, finalised after extensive negotiations, will be signed during PM Modi’s London visit. Photo : iStock
The Free Trade Agreement (FTA) between India and the United Kingdom got the nod from the Union Cabinet led by Prime Minister Narendra Modi, sources said on Wednesday, adding that the much-awaited formal signing of the pact will be held during PM Modi’s visit to London on 24 July. PM Modi will begin his two-day visit to the United Kingdom on Wednesday.
When asked whether the FTA will be formally signed during PM Modi’s visit to the UK, Foreign Secretary Vikram Misri on Tuesday had said that “last-minute” work on it is continuing. “We are continuing to work on those and last-minute work on that is continuing,” he said.
PM Modi’s 2-Day UK Visit: All Eyes on FTA
The Union Cabinet gave its nod for the free trade agreement between India and the United Kingdom. Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynolds are likely to sign the free trade agreement (FTA) in the presence of the two prime ministers – PM Modi and his British counterpart Keir Starmer, people familiar with the matter said.
During his two-day visit, PM Modi and British Prime Minister Keir Starmer will be holding wide-ranging talks. Starmer is set to host PM Modi on Thursday at Chequers, the official country residence of the British prime minister that is located 50 kms northwest of London. PM Modi will also meet King Charles III during his July 23-24 visit to the UK, according to Foreign Secretary Vikram Misri.
India-UK FTA: Who Gains, What?
The FTA between India and the UK was sealed in May this year and is the biggest FTA the UK has done since leaving the European Union. The deal is expected to benefit 99 per cent Indian exports from tariff and will make it easier for British firms to export whisky, cars and other products to India besides boosting the overall trade basket, reported PTI.
The trade deal, firmed up after three years of negotiations, is expected to ensure comprehensive market access for Indian goods across all sectors and India will gain from tariff elimination on about 99 per cent of tariff lines (product categories) covering almost 100 per cent of the trade values, according to officials.
The two sides also sealed a double contribution convention. It provides for exemption for employers of Indian workers from paying social security contributions in the UK.
“This visit, though a short one, will give both leaders the opportunity to review the entire gamut of the bilateral relationship and discuss ways to strengthen it further, and also discuss issues that are of regional and global relevance,” Misri said at a media briefing.
