Proposed FTA between India and UK to provide major boost to bilateral trade

India-UK Free Trade Agreement (FTA), which is likely to be signed during Prime Minister Narendra Modi’s upcoming visit to the United Kingdom next week, is projected to increase trade between the two countries by £25.5 billion every year, Anna Shotbolt, Deputy Trade Commissioner for South Asia at the British High Commission, New Delhi, said.

Speaking at an interactive session on “India–UK Free Trade Agreement: The Way Forward”, which was organised by the PHD Chamber of Commerce and Industry on Saturday here, she highlighted that under the proposed FTA, there are provisions for tariff reductions on 90 percent of traded goods between the two countries.

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However, it is not only about tariffs which are indeed a crucial aspect that will benefit many industries. Creative companies will also benefit through stronger copyright protections, and the services sector will see gains as well. The Double Taxation Avoidance Convention will also help workers on both sides, creating more transparency and certainty, she, according to a press release issued by the PHDCCI, said.

Speaking on the occasion, Ranjeet Mehta, CEO and Secretary General, PHDCCI, emphasised that the UK-India FTA negotiations began when India was the fifth-largest economy, and by the time of its signing, India has become the fourth-largest. Britain is among the largest developed economies, and this FTA is a significant bilateral trade agreement for India.

He further discussed the importance of the social security clause that supports Indian professionals going to the UK and said that we must take advantage of this FTA.

Naveen Seth, Deputy Secretary General, PHDCCI, said the programme held was a part of PHDCCI’s continuous efforts to build strong international partnerships and promote economic cooperation.

PM Modi will embark on a two-nation tour to the UK and the Maldives from July 23 to 26.

The first leg of his journey will be to the United Kingdom on July 23-24, where he is expected to sign the landmark India-UK FTA.

The agreement is poised to impact 99 per cent of Indian exports to the UK by reducing tariffs, thereby facilitating British exports such as whisky and cars to India.