In a landmark development poised to reshape economic ties, Prime Minister Narendra Modi and UK Prime Minister Keir Starmer have announced the successful conclusion of the India-UK Free Trade Agreement (FTA). This ambitious agreement, finalized after a phone conversation between the two leaders, marks a historic milestone in the Comprehensive Strategic Partnership between India and the UK.

The FTA is expected to significantly enhance bilateral trade, generate new employment opportunities, raise living standards, and improve the overall well-being of citizens in both countries. By removing tariffs on a majority of goods and services, the deal aims to unlock new potential for the two nations to jointly develop products and services for global markets. Both leaders highlighted that the agreement between the two large and open market economies will create new opportunities for businesses, strengthen economic connections, and deepen interpersonal relationships.

Negotiations for the FTA began in January 2022, and have seen fourteen rounds of talks. While progress was initially swift, the process faced delays due to political changes and complex techno-legal matters related to trade, investment, and social security. However, with renewed commitment from both sides, negotiations regained momentum, culminating in the agreement.

The agreement covers trade in goods and services and is expected to boost innovation and job creation in both economies. The UK views the agreement as a way to strengthen alliances and reduce trade barriers, contributing to a stronger and more secure economy. The FTA is not just about trade; it encompasses deeper cooperation in areas such as security, education, technology, and climate change. Both countries have agreed to enhance bilateral cooperation in healthcare and life sciences, with the goal of strengthening collaboration in health technology and innovation.

The India-UK FTA is a balanced, equitable, and ambitious agreement that is expected to significantly enhance bilateral trade, generate new avenues for employment, raise living standards and improve the overall well-being of citizens in both countries. This agreement solidifies the strong foundations of the India-UK Comprehensive Strategic Partnership, paving the way for a new era of collaboration and prosperity.