India and UK agree to mutually beneficial FTA & Double Contribution Convention

 In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention. Prime Minister Narendra Modi and Prime Minister of the United Kingdom Keir Starmer had a telephone conversation yesterday in which the two leaders welcomed the successful conclusion of an ambitious and mutually beneficial India-UK Free Trade Agreement. Prime Minister Modi said, These landmark agreements will further deepen India-UK Comprehensive Strategic Partnership and catalyse trade, investment, growth, job creation, and innovation. 

UK Prime Minister Keir Starmer said that strengthening alliances and reducing trade barriers with economies around the world is part of their plan for change to deliver a stronger and more secure economy. During the conversation, both Prime Minister Modi and Prime Minister Starmer agreed that expanding economic and commercial ties between the two countries remains a cornerstone of the increasingly robust and multifaceted partnership. 

Both the leaders



also agreed that the landmark agreements between the two big and open market economies of the world will open new opportunities for businesses, strengthen economic linkages, and deepen people-to-people ties. Commerce and Industry Minister Piyush Goyal also lauded these agreements, saying that these will set a new benchmark for equitable and ambitious trade betweenthe  two large economies.

The free trade agreement will unlock new potential for the two nations to jointly develop products and services for global markets. It will enable comprehensive market access for goods across all sectors. India will significantly gain from tariff elimination on about 99 percent of the tariff lines covering almost hundred percent of the trade value. The FTA will boost manufacturing and export opportunities in sectors like textiles,leather, footwear, toys, gems, jewellery and engineering goods among others.This will improve Indian goods competitiveness in the UK and in other countries. It will have significant positive gains for employment in India.