India and UK Forge Historic Free Trade Agreement

In a landmark move, India and the United Kingdom have signed a comprehensive Free Trade Agreement (FTA), paving the way for significant economic collaboration. The agreement was finalized by Indian Prime Minister Narendra Modi and UK Prime Minister Sir Keir Starmer in London. This historic pact is set to enhance trade relations, create jobs, and boost economic growth in both nations.

Major Investments by Airbus and Rolls Royce

Among the key beneficiaries of this agreement are European aviation giant Airbus and British luxury automobile manufacturer Rolls Royce. These companies are part of a group of 26 British firms that have secured lucrative deals with India. Airbus and Rolls Royce will supply aircraft and engines to Indian airlines, with deals valued at nearly 5 billion GBP. This collaboration is expected to bolster India’s aviation sector while creating jobs in the UK.

Carbon Clean’s Expansion into India

Carbon Clean, a carbon capture service provider originally founded in India and now headquartered in London, is set to invest 7.6 million GBP in a new office in Mumbai. This move highlights the growing focus on clean technology and sustainable practices as part of the FTA.

Medical Technology and Specialty Chemicals Investments

UK-based medical technology firm Occuity has signed a 74.3 million GBP export deal with India’s Remidio Innovative Solutions. Additionally, Johnson Matthey, a specialty chemicals firm, has secured contracts worth over 20 million GBP and plans to invest four million GBP in India, supporting up to 20,000 jobs.

Indian Firms Invest in the UK

The agreement also sees 18 Indian firms committing to investments in the UK. Notably, DCube AI from Kerala will invest 5 million GBP in Manchester and London. IT services company LTIMindtree plans a 1 million GBP investment in London, creating over 300 jobs. Aurionpro, specializing in banking and cybersecurity technology, will invest 20 million GBP to establish a UK office, generating over 150 jobs.

Impact on Agriculture and Fisheries

The FTA is expected to benefit Indian farmers by removing tariffs on 95% of agricultural and processed food items exported to the UK. Products like turmeric, pepper, cardamom, mango pulp, pickles, and pulses will gain access to premium markets. The fisheries sector will also benefit as exports such as shrimp and tuna will now enter the British market duty-free.

Economic Benefits for Both Nations

Prime Minister Modi emphasized that the agreement would reduce business costs and enhance confidence between the two economies. Sir Starmer hailed the deal as “historic,” noting it would boost wages and living standards while lowering prices for British consumers on Indian goods like clothes, shoes, and food.