India and UK Sign Landmark Free Trade Agreement, Boosting Bilateral Trade by £25.5 Billion

Strategic Insights -

Indian Prime Minister Narendra Modi and British Prime Minister Keir Starmer signed the Comprehensive Economic and Trade Agreement (CEPA) during Modi's two-day official visit to the UK. This historic deal is expected to increase bilateral trade to £25.5 billion per year and boost key sectors such as textiles, leather, and engineering goods. The agreement aims to eliminate or reduce tariffs on imports and exports between the two nations, making products more accessible and affordable for the Indian people.

Key Takeaways:

  • The India-UK Free Trade Agreement is expected to boost bilateral trade by £25.5 billion per year, with a target of increasing trade to $120 billion by 2030.
  • The agreement aims to eliminate or reduce tariffs on imports and exports between the two nations, making products more accessible and affordable for the Indian people, particularly youth, farmers, and MSME sector.
  • The deal is forecast to create thousands of British jobs and unlock new opportunities for businesses, with British companies like Airbus and Rolls-Royce announcing new contracts worth around £5 million.
  • The UK-India Vision 2035 is a renewed Comprehensive Strategic Partnership that goes beyond trade, focusing on innovation, deepening defence cooperation, tackling climate change, and nurturing educational connections.
  • The agreement includes a commitment to strengthen national security by harnessing frontier technologies and shaping the technologies of tomorrow.
  • The two nations also agreed to strengthen cooperation in tackling corruption, serious fraud, organised crime, and irregular migration through enhanced intelligence sharing and operational collaboration.

Statistics:

  • £25.5 billion: The expected increase in bilateral trade per year due to the India-UK Free Trade Agreement.
  • $120 billion: The target for increasing trade between India and the UK by 2030.
  • 26: The number of British companies that have announced new business deals in India as part of the reinvigorated partnership.
  • £5 million: The value of contracts recently agreed between British companies and Indian partners, including Airbus and Rolls-Royce.

Sources:

  • IE Online Media Services Pvt. Ltd., distributed by Contify.com.