FTA between India and Britain
India and Britain on Tuesday completed a ‘historic’ free trade agreement that would remove the duty on export of labor-dominated products such as leather, shoes and clothing, while the import of whiskey and cars from Britain will be cheaper. The agreement is expected to double the trade between the two economies by 2030 to $ 120 billion. The world’s fifth major economy India and the sixth major economy Britain have completed this trade agreement after a three -year dialogue. In the UK market, 99 percent of Indian products will be reduced to zero when the FTA is implemented, while Indian workers will be allowed to travel without changes in Britain’s immigration system.
No concession for British dairy products, apples, cheese
Under the FTA, dairy products, apples and cheese, will not give any concession to Britain in import duty on agricultural commodities like apples and cheese. An official gave this information on Tuesday. The official said that about 10 percent fees lines are in the list of sensitive goods. India and Britain on Tuesday announced the completion of talks on FTA.
Both countries will benefit
Apart from this, taxes will be cut on the export of Indian textiles, frozen shrimp, jewelery and gems. Similarly, import duty of whiskey and gin liquor varieties from Britain will also be cut. The duty on import of vehicles under both sides quota will be 10 percent, which will benefit vehicle companies like Tata-JLR. Indian products entering zero charges in the UK include minerals, chemicals, gems and jewelery, plastic, rubber, wood, paper, clothes, glass, ceramic, mechanical and electric machinery, weapons/ammunition, transport/vehicle, furniture, sports goods, animal products and processed foods.
PM Modi described ‘historic milestone’
Prime Minister Narendra Modi announced the completion of these agreements after talking to the British Prime Minister Care Stmper over the phone. Describing it as a ‘historic milestone’, Prime Minister Modi said, “India and Britain have successfully conducted an ambitious and mutually beneficial free trade agreement (FTA) with a double contribution agreement.” He said, “These historical agreements will deepen our comprehensive strategic partnerships and will encourage business, investment, development and innovation in the economies of both countries and will encourage the economies of both countries.” The Prime Minister’s stormer also described it as historic and said that it will improve working people and businesses in both countries.
Indian professionals will benefit big
The two countries have also completed negotiations on the double contribution agreement with the FTA. This will help Indian professionals working for a limited period in the UK to avoid double contribution to the Social Security Fund. The Commerce Ministry said, “Indian workers and their employers temporarily governed from the double contribution agreement to get a significant financial benefit to the Indian service providers when they get a significant financial benefit when they are exempted from paying social security contribution to the UK for a period of three years.” However, negotiations on bilateral investment treaties (BIT) between India and Britain are still on. Previously, there were plans to complete all three agreements simultaneously.
Ministry of Commerce called historical agreement
The Ministry of Commerce said that the FTA is a modern, comprehensive and historical agreement with Britain, which also wants to achieve intensive economic integration with trade liberalization and duty concessions. The ministry said that India will benefit from the removal of fees on about 99 percent of the product categories, which covers about 100 percent of the trade price. On the services front, India will also benefit in areas like information technology and related services, finance, professional and educational service. The ministry said, “I will open immense opportunities in Britain for talented and skilled Indian youth, which is a major global center for digital services due to its strong financial and professional service sectors and advanced digital infrastructure.”
Latest business news