India-uk free trade agreement: The cabinet on Tuesday approved the Free Trade Agreement (FTA) between India and Britain. PTI has given information about this by quoting sources. PM Modi will sign the trade agreement between India and Britain on July 24 in London. The agreement, officially called the Cast Economic and Trade Agreement. Prime Minister Narendra Modi’s four -day visit to Britain and Maldives begins on Wednesday. Commerce and Industry Minister Piyush Goyal will be with the Prime Minister during this period. Let us tell you that the two countries announced the completion of talks on the trade agreement on 6 May.
Both countries want to increase trade up to $ 120 billion by 2030
The trade agreement between India and Britain proposes to remove tax on export of labor-dominated products such as leather, shoes and clothing. It is also proposed to make the import of whiskey and cars from Britain cheaper, so that by 2030 the trade between the two economies doubled to US $ 120 billion. The agreement has chapters on issues like goods, services, innovation, government procurement and intellectual property rights. The text of the agreement is usually signed by the Commerce Ministers of the two countries. After the free trade agreement is signed, it will require approval from the British Parliament before it is effective.
Both countries also fulfill the talks on social security agreement
The two countries have also completed negotiations on double contribution conference agreement or social security agreement. This will help Indian professionals working for a limited period in the UK to avoid double contribution to the Social Security Fund. However, negotiations on bilateral investment treaty (BIT) are still on. The FTA is implemented after the signature and objective support by the two countries.
What happens in free trade agreement
In free trade agreements, both countries either eliminate the customs on the maximum goods between them or reduce them significantly. These agreements also make the criteria to promote trade in services and bilateral investment. India’s exports to Britain increased by 12.6 percent to US $ 14.5 billion in 2024–25, while imports increased by 2.3 percent to US $ 8.6 billion. Bilateral trade between India and Britain rose from US $ 20.36 billion in 2022-23 to US $ 21.34 billion in 2023-24.
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