Historic Trade Pact Signed Between India and UK

India and the United Kingdom have officially signed a landmark Free Trade Agreement (FTA), marking a significant milestone in bilateral relations. The agreement, signed by India’s Commerce Minister Piyush Goyal and British Trade Minister Jonathan Reynolds, took place in the presence of Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer. This FTA is expected to significantly enhance trade between the two nations, with projections indicating a potential doubling of bilateral trade to $120 billion by 2030.

Opportunities for Indian Farmers

One of the most notable aspects of this agreement is the substantial benefits it offers to Indian farmers. The FTA provides duty-free access for India’s agricultural and processed food products to British markets. This development is poised to open new avenues for Indian farm produce, offering better market reach and increased profit margins. Products such as turmeric, pepper, cardamom, mango pulp, pickles, and pulses will now enjoy duty-free entry into the UK, giving Indian farmers a competitive edge over European exporters.

Safeguarding Sensitive Sectors

While the agreement opens up new opportunities, the Indian government has taken measures to protect its sensitive agricultural sectors from British imports. There will be no tariff concessions on dairy products, apples, oats, and edible oils, ensuring that domestic farmers remain unaffected by foreign competition.

Boost for Fisheries and Other Exports

The FTA also promises significant benefits for India’s fisheries sector, particularly in coastal states like Andhra Pradesh, Odisha, Kerala, and Tamil Nadu. Exports such as shrimp, tuna, fishmeal, and feeds will now enter the UK market duty-free. Additionally, the agreement facilitates easier export of labor-intensive products like leather, footwear, and clothing. On the import side, goods such as whiskey, cars, and medical devices from the UK will become more affordable in India.

Strengthening Economic Ties

Prime Minister Modi emphasized that this visit to the UK aims to advance economic partnerships between the two countries. He highlighted that the focus will be on fostering prosperity, growth, and job creation. British Prime Minister Starmer hailed the FTA as a “landmark deal,” emphasizing its potential to create thousands of jobs in the UK while unlocking new business opportunities.