Historic Free Trade Agreement Between India and UK

The Union Cabinet has given its approval to the much-anticipated free trade agreement (FTA) between India and the United Kingdom. This landmark pact is set to be signed in London on July 24, during Prime Minister Narendra Modi’s visit, marking a significant milestone in bilateral relations.

Key Highlights of the Agreement

The Comprehensive Economic and Trade Agreement, finalized on May 6 after extensive negotiations, aims to eliminate taxes on exports of labor-intensive products like leather, footwear, and apparel. It also seeks to reduce the cost of importing whisky and cars from the UK. Both nations are targeting to double their bilateral trade to $120 billion by 2030.

Broader Implications

Beyond goods and services, the agreement encompasses innovation, government procurement, and intellectual property rights. A Double Contribution Convention Agreement has also been negotiated to allow Indian professionals in the UK to avoid double social security contributions. However, discussions on the bilateral investment treaty (BIT) continue.

Once ratified by the British Parliament, the FTA will officially come into effect, fostering greater trade and investment flows between the two countries.