What Does the New India-UK Free Trade Pact Mean for Bilateral Relations?

A New Era in India-UK Trade Relations

London: On Thursday, India and the United Kingdom finalized a significant free trade agreement aimed at enhancing market access, reducing tariffs on British whisky and automobiles, and doubling bilateral trade by 2030. This pact comes as both nations seek to navigate the complexities of global trade dynamics, particularly in light of the evolving policies from Washington.

Prime Minister Narendra Modi described the day as historic for India-UK relations, as he and British Prime Minister Keir Starmer witnessed the signing of the agreement at Chequers, the British PM's country residence.

Following a private discussion, the leaders engaged in detailed negotiations.

The agreement is projected to eliminate tariffs on 99% of Indian exports.

Starmer emphasized that this is the most significant trade deal the UK has established since its exit from the European Union.

In his address, Modi expressed gratitude to the UK for its strong denunciation of the recent Pahalgam terror attack, underscoring a shared commitment to combatting terrorism without double standards.

He stated that extremist ideologies should not exploit democratic freedoms.

Modi also highlighted the ongoing collaboration between Indian and UK security agencies, particularly regarding the extradition of economic offenders.

The free trade agreement is expected to open new avenues for Indian agricultural products and processed foods in the UK market, benefiting youth, farmers, fishermen, and the MSME sector.

Indian textiles, footwear, gems, jewellery, seafood, and engineering products will enjoy improved access to the UK market.

Additionally, Modi mentioned the 'Vision 2035' initiative, which aims to invigorate the strategic partnership over the next decade.

He also addressed broader issues concerning the Indo-Pacific region, the conflict in Ukraine, and the situation in West Asia, emphasizing the importance of respecting national sovereignty.

Modi concluded by expressing condolences for the loss of British lives in the recent Air India plane crash in Ahmedabad.