Is the India-UK Free Trade Agreement the Most Significant Trade Deal Post-EU Exit?

London, July 24 (NationPress): Emphasizing the tremendous benefits of the Free Trade Agreement (FTA) between India and the UK, British Prime Minister Keir Starmer remarked on Thursday that it represents the largest and most economically vital trade deal the nation has pursued since its departure from the European Union (EU). He highlighted that the India-UK FTA will enhance wages, elevate living standards, and increase disposable income for the working class.

In a joint press conference with Prime Minister Narendra Modi in London on Thursday, Starmer stated that this FTA is advantageous for British workers in high-tech manufacturing, whiskey producers in Scotland, and the service industries in London, Manchester, and Leeds, as it will lower costs for Indian products in the UK.

He expressed, "This deal will yield benefits for both nations, raising wages, improving living conditions, and providing more financial resources for workers... It's beneficial for jobs and businesses by reducing tariffs, making trade more affordable and efficient. Consumers will also benefit as it will decrease prices on Indian goods in the UK, encompassing clothing, footwear, and food, ensuring long-term advantages."

"This agreement is projected to contribute approximately £4.8 billion annually to the UK economy and £2.2 billion to wages, along with substantial financial benefits for various regions across the UK. We recognize this as the most significant and economically meaningful trade agreement the UK has established since leaving the EU, and I believe it's one of the most extensive agreements India has ever engaged in. I appreciate Prime Minister Modi for his leadership and practicality, and I would like to thank everyone who dedicated efforts to finalize this deal," he added.

On Thursday, PM Modi and his British counterpart formalized the long-anticipated Free Trade Agreement (FTA), expected to enhance annual bilateral trade by approximately USD 34 billion. Under this landmark agreement, India will reduce tariffs on 90% of UK products, while the UK will lower duties on 99% of Indian exports, streamlining tariff lines and regulatory processes across various sectors.

Starmer noted, "As I've mentioned before, and as we discussed, we have entered a new global phase that demands us to enhance our efforts rather than retreat, working for the British populace by forging deeper partnerships and alliances, and today signifies that commitment."

He asserted that the FTA with India conveys a significant message that the "UK is ready for business," which is already fostering immense confidence.

"The UK has been pursuing a deal like this for many years, but this government has successfully achieved it, sending a strong signal that the UK is ready for business, which is already instilling great confidence. Today, we are unveiling nearly £6 billion in investments and exports between India and the UK, resulting in 2200 new jobs for British workers."

Starmer also shared that both nations are launching the India-UK Vision 2035 Strategy, committing to more closely collaborate in critical sectors such as defense, migration, climate change, education, and health.

"As we discussed this morning, this is not the extent of our collaboration with India. Our nations share unique historical, familial, and cultural ties, and we aspire to further strengthen our relationship to be even more ambitious, modern, and long-term focused. The enhancement of our partnership we discussed last autumn is why, alongside this trade agreement, I am excited to announce the initiation of the India-UK Vision 2035 Strategy, pledging closer cooperation in defense, migration, climate change, education, and health," he elaborated.

"We will continue to build upon the exceptional work we are already doing in technology and innovation, celebrating the first anniversary of the groundbreaking Technology Security Initiative, maximizing the opportunities it presents for both nations," he concluded.

Earlier, PM Modi met Starmer at Chequers Estate, the UK Prime Minister's countryside retreat, initiating official engagements during his fourth visit to the nation. PM Modi is in the UK for a two-day official visit at the invitation of his British counterpart.