India-UK Trade Deal Unveiled: PM Modi Highlights Key Sectors Set for Explosive Growth After Historic Agreement

India has taken a significant step in its trade relations by signing a Free Trade Agreement (FTA) with the United Kingdom. This agreement, celebrated by industry leaders and policymakers alike, represents a fresh chapter in economic collaboration between the two nations.

Prime Minister Narendra Modi’s recent visit to the UK included a delegation of prominent Indian business figures, including Sunil Bharti Mittal, founder of Bharti Enterprises. The Confederation of Indian Industry (CII) organized this visit to strengthen ties and promote investment. Mr. Mittal expressed optimism about the FTA’s potential to foster innovation and improve market access, benefiting businesses in both countries.

The discussions during the visit revolved around several key sectors like digital transformation, healthcare, and sustainable practices. The UK remains an essential trading partner for India, and over the last five years, India has maintained a favorable trade balance. Currently, around 970 Indian firms operate in the UK, contributing significantly to local economies.

With the FTA in place, both nations aim to double their bilateral trade to $120 billion by 2030. This will likely reduce trade barriers and enhance investor confidence, paving the way for increased collaboration in various industries. For example, sectors like textiles, apparel, and technology stand to gain from better frameworks for trade and investment.

Additionally, the agreement includes a Social Security provision that allows Indian professionals in the UK to maintain contributions to their home country’s system for up to three years. This feature aligns with requests for a longer exemption period, reflecting mutual recognition of the mobility of skilled workers.

Expert opinions highlight the importance of this FTA in today’s economic landscape. Dr. Raghuram Rajan, former governor of India’s central bank, noted that trade agreements like this are essential for fostering economic resilience in an increasingly interconnected world. He emphasized that cooperative strategies in trade lead to better consumer options and innovation.

Recent statistics suggest that countries that engage in strong trade agreements often experience economic growth. For instance, research from the World Trade Organization indicates that comprehensive trade deals can increase national GDP by 1 to 2 percent over a decade, a significant boost for both India and the UK.

As the FTA moves forward, it aims to unlock new opportunities in clean energy and advanced manufacturing. With India’s expanding market and the UK’s forte in innovation, the potential for growth is promising. This partnership not only emphasizes trade but also aims to build sustainable practices for the future.

Overall, the India-UK FTA is not just a milestone; it’s a strategic move that could reshape the economic landscape, benefiting both countries in the years to come.



Source link

india uk trade deal, PM Modi UK visit, PM Modi UK visit Live Updates, PM Modi news, India-UK FTA, UK FTA, free trade agreement, FTA, Narendra modi, PM Modi UK Visit LIVE, business news, business news live