At the India-UK trade deal signing ceremony on Thursday, Prime Minister Narendra Modi said the agreement would benefit India’s textile, gems and jewellery sectors, and MSMEs, while helping Indians access medical devices and aircraft parts at affordable prices. He said the deal, signed after years of effort, is not merely an economic partnership but also a blueprint for shared prosperity.
“Along with this agreement, we have also reached a consensus on the Double Contributions Convention. This will inject new energy into the service sectors of both countries, especially in technology and finance. It will promote ease of doing business, reduce the cost of doing business, and increase the confidence of doing business,” PM Modi said in London.
Additionally, the UK’s economy would benefit from India’s skilled talent. PM Modi said these agreements would enhance investment and generate new employment opportunities in both countries. Moreover, since the agreements are between two democracies and two of the world’s major economies, they would lend support to global stability and prosperity, he said.
“To give new momentum and energy to our comprehensive strategic partnership in the coming decade, today we are launching Vision 2035. Vision 2035 is a roadmap that will form the basis of a strong, trustworthy, and ambitious partnership in the fields of technology, defence, climate, education, and people-to-people connectivity,” PM Modi said.
The UK government on Thursday said the trade deal would increase bilateral trade between the two countries by nearly 39 per cent in the long run — equivalent to $34 billion a year compared with projected 2040 levels of trade in the absence of an agreement (currently at $21 billion annually).
‘FTA draws up defence industrial roadmap’
PM Modi said a defence industrial roadmap had also been drawn up for partnership in defence and security, and work would continue on strengthening the technology security initiative.
“It is our commitment that from AI to critical minerals, semiconductors to cybersecurity, we shall create the future together. In the field of education too, we are writing a new chapter together. Six universities from the UK are opening campuses in India. Just last week, the University of Southampton inaugurated its campus in the city of Gurugram,” he said.
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“We have continued to exchange views on peace and stability in the Indo-Pacific, the ongoing conflict in Ukraine, and the situation in West Asia. We support the early restoration of peace and stability. Respect for the sovereignty and territorial integrity of all countries is essential. Today’s era demands development, not expansionism,” he added.
The UK deal is significant since it marks the beginning of integration between the advanced services sectors of the UK and India.
India has finally opened its doors to high-end British cars and whisky, albeit in a phased manner. The India-UK Free Trade Agreement (FTA) ensures comprehensive market access for goods across all sectors, covering all of India’s export interests. India will benefit from tariff elimination on approximately 99 per cent of tariff lines, covering nearly 100 per cent of trade value — offering opportunities to boost bilateral trade between India and the UK, according to India’s Commerce and Industry Ministry.
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