India and the UK have inked a landmark free trade pact that will increase market access, cut tariffs on British whisky and cars among other items and double bilateral trade by 2030 as the two strategic partners vowed to chart a new growth path amid growing global concerns over Washington’s trade policies.
“Today is a historic day in India-UK relations,” said Prime Minister Narendra Modi, who witnessed the signing of the trade pact along with his British counterpart Keir Starmer. After many years of hard work, a comprehensive economic and trade agreement has been inked between India and the UK, he noted, with Starmer by his side at Chequers, the country residence of the British PM. The two leaders held a tete-a-tete before holding serious talks.
AS PTI reported, The deal is expected to benefit 99 per cent Indian exports from tariff. In his remarks, Starmer said it is the biggest and economically most significant trade deal that the UK has signed since leaving the European Union. In his media statement, Modi thanked the UK for its strong condemnation of the Pahalgam terror attack and said both sides are united that “there is no place for double standards in the fight against terrorism.”
We agree that forces with extremist ideologies cannot be allowed to misuse democratic freedoms, he said. Modi said security agencies of India and the UK will continue to enhance cooperation and coordination on matters such as the extradition of economic offenders.
Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises and Co-Chair of the India-UK CEO Forum, who was part of the Confederation of Indian Industry (CII) delegation accompanying Modi on the UK visit, said businesses across both countries are set to gain tremendously from the deal.
Indian industry across all sectors welcomes the India-UK FTA with great optimism. This agreement establishes a modern, forward-looking partnership that will stimulate innovation, ease market access, and foster investment, said Mittal. Businesses in India as well as the UK stand to gain tremendously, as it lays the groundwork for scaling up bilateral cooperation across key growth sectors, he said.
Once implemented following British parliamentary ratification, CETA is expected to reduce trade barriers, enhance investor confidence, and promote joint ventures and technology transfers, especially in labour intensive sectors like textiles and apparel, leather and leather goods, gems and jewellery, marine products, besides others.
The agreement will provide a strong framework for unlocking new opportunities in clean energy, digital technologies, life sciences, and advanced manufacturing.
