
Modi, Starmer meet in London; India, UK sign free trade agreement
FTA is expected to benefit Indian exports in the form of tariff relief, and make it easier for British firms to export whiskey, cars, other products to India
India and the UK on Thursday (July 24) inked a landmark free trade agreement (FTA) that will significantly improve market access and will boost bilateral trade by around $34 billion annually.
The deal was formalised in presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer. Deal details are awaited.
The FTA is expected to benefit 99 per cent of Indian exports in the form of tariff relief, and will make it easier for British firms to export whiskey, cars and other products to India besides boosting the overall trade basket, according to officials.
3 years of talks
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, they said.
Watch | Modi’s UK-Maldives visit: Political, economic aims beyond mere optics
Earlier, Starmer hosted Modi at Chequers, the country residence of the British PM. The two leaders held a tete-a-tete before holding serious talks.
Besides witnessing the inking of an ambitious free trade agreement, the two prime ministers are also expected to unveil an "UK-India Vision 2035" to take the partnership to new heights.
Modi landed in London on Wednesday as part of his two-nation trip to the UK and the Maldives.
Along with the FTA, the biggest the UK has done since leaving the European Union, the two sides also sealed a double contribution convention. It provides for the exemption for employers of Indian workers from paying social security contributions in the UK.
With agency inputs