The FTA has taken place in the backdrop of growing economic relations between India and the UK, and the bilateral trade of about $60 billion between both nations is projected to double by 2030, a government statement has said.
PM Narendra Modi made the FTA announcement after a telephonic conversation with his British counterpart Keir Starmer.
India and the UK agreed on a trade deal on May 6 to boost economic ties between both nations, as part of which India’s tariffs on imported whisky and gin will be halved from 150 percent to 75 percent, and subsequently be tapered to 40 percent by the tenth year of the deal.
Tariffs on automotive will fall from more than 100 percent to 10 percent, under a quota.
Lower tariffs are expected to benefit Britain’s Scotch whisky industry, which have a wide following in India. The trade agreement will result in cheaper whiskies from UK coming into India, which is the world’s largest whisky market.
Other goods which will are set to benefit from lower Indian tariffs include cosmetics, lamb, salmon, soft drinks, chocolate and biscuits, along with aerospace, medical devices, and electrical machinery.
Reacting to the trade deal, UK PM Keir Starmer said lower trade barriers with economies around the world will help ‘stronger and more secure economy’.
Keir Starmer added, “…this is the biggest trade deal that we, the UK, have done since we left the EU. And it’s the most ambitious trade deal that India has ever done. And this will be measured in billions of pounds into our economy, and jobs across the whole of the United Kingdom.”
“…it’s been promised many times over the last eight years. Prime Minister Modi and I decided in Brazil last year that we would move at a pace in relation to these negotiations,” PM Starmer added.
The FTA has taken place in the backdrop of growing economic relations between India and the UK, and the bilateral trade of about $60 billion between both nations is projected to double by 2030, a government statement has said.
The deal between the world’s fifth and sixth-largest economies was concluded after three years of prolonged negotiations and aims to raise bilateral trade by another GDP 25.5 billion ($34 billion) by 2040, along with greater market access and relaxed trade terms.
Disclaimer: Moneywealth research provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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