The UK and India have signed a historic free trade agreement (FTA), marking a significant milestone in their strategic partnership. The deal aims to boost trade between the two nations, promoting economic growth, job creation, and innovation.
The UK and India have signed a historic free trade agreement (FTA), marking a significant milestone in their strategic partnership. The deal aims to boost trade between the two nations, promoting economic growth, job creation, and innovation.
The proposed UK-India Free Trade Agreement (FTA) aims to enhance trade between the two nations.
A key aspect is the reduction of tariffs on goods, including textiles and automotive parts.
The agreement also covers services, such as financial and IT sectors.
It's expected to boost bilateral trade by 10% annually.
India's exports to the UK are primarily in pharmaceuticals, engineering goods, and textiles.
Meanwhile, the UK's main exports to India include machinery, electrical equipment, and vehicles.
Key Benefits for Indian Businesses
The ‘UK-India FTA offers numerous benefits for Indian businesses, including’:
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Access to the UK‘s large and growing market, with a population of over 67 million consumers
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Tariff-free trade in goods such as textiles, pharmaceuticals, and engineering products
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Simplified procedures for exporting goods and services, reducing bureaucracy and costs
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Opportunities for Indian companies to participate in the UK‘s major infrastructure projects
UK Businesses to Benefit from Increased Trade
For UK businesses, the agreement presents a unique opportunity to tap into India‘s vast market, with over 1.3 billion consumers. The deal will also:
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Reduce tariffs on goods such as cotton, wool, and leather products
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Facilitate the export of services, including financial services, IT, and creative industries
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Provide access to a large and growing middle class in India
The United Kingdom is home to a diverse range of businesses, from small startups to multinational corporations.
According to a report by the UK's Office for National Statistics (ONS), there were over 5 million private sector businesses in the UK as of 2020.
The majority of these businesses are small and medium-sized enterprises (SMEs), employing fewer than 250 people.
The service sector dominates the UK economy, accounting for around 80% of GDP.
A New Era for UK-India Relations
The ‘UK-India FTA is part of a broader strategy to strengthen ties between the two nations’ . The agreement demonstrates the UK‘s commitment to building a strong and diverse trade relationship with India, while also promoting economic growth and job creation.
The United Kingdom and India have a long history of diplomatic relations, dating back to the British colonial era.
The UK established its first trade post in India in 1612, and by the mid-18th century, it had gained control over large parts of the Indian subcontinent.
After India's independence in 1947, the two countries maintained close ties, with the UK providing significant economic aid.
Today, the UK is one of India's largest trading partners, with bilateral trade valued at over £23 billion in 2020.
Next Steps
The UK and Indian governments will work together to implement the terms of the FTA, providing support for businesses and traders. As the partnership continues to grow, both countries are poised to reap the benefits of increased trade and cooperation.
- sky.com | UK and India strike landmark trade deal
