India-UK FTA: The free trade agreement between India and Britain will be signed tomorrow, these
India-uk fta: India and Britain will sign a free trade agreement (FTA) in London on Thursday. This will make it possible to export labor-dominated products such as leather, shoes and clothing at concessional rates, while the import of whiskey and cars from Britain will be cheaper. This agreement will help in doubling trade between the two economies to $ 120 billion by 2030. The agreement, which is officially called a comprehensive economic and trade agreement, will be signed in the presence of Prime Minister Narendra Modi and British Prime Minister Kir Stmper.
Commerce Minister of India and Britain will sign the agreement
Commerce and Industry Minister Piyush Goyal and his British counterpart Jonathan Reynolds will sign the agreement. Subsequently, it will have to take the approval of the British Parliament before it is implemented. This process can take about a year. Let us tell you that PM Modi left for a four -day visit to Britain and Maldives on Wednesday. The two countries announced the completion of negotiations for the trade agreement on 6 May. The agreement includes issues such as goods, services, innovation, government procurement and intellectual property rights (IPR). Both 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.
99 percent Indian exports will get zero fee profit
In such business agreements, the two countries either eliminate custom duty on maximum goods with mutual trade or reduce it drastically. These agreements also make the criteria to promote trade in services and bilateral investment. Under the agreement, 99 percent of Indian exports will get the benefit of zero fee in the UK market. The main proposals of the agreement include the British whiskey under a quota and on which the import duty is reduced from 150 percent to 75 percent and then reduced it to 40 percent for 10 years of the agreement; The vehicle fee will be reduced from 100 percent to 10 percent. Reduction in import duty can open markets and trade can be cheaper for businessmen and Indian consumers.
Export opportunities will open for these things
Other such items include cosmetics, aerospace, sheep meat, medical equipment, salmon, electric machinery, soft drinks, chocolate and biscuits. This will open domestic labor-dominated areas such as textiles, sea products, leather, shoes, sports goods and toys, gems and jewelery, engineering goods, vehicle parts and engines, and export opportunities for organic chemicals. India’s exports to Britain increased by 12.6 percent to $ 14.5 billion in FY 2024-25, while imports increased by 2.3 percent to $ 8.6 billion. Bilateral trade between India and Britain increased from $ 20.36 billion in 2022-23 to $ 21.34 billion in 2023-24.
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