India-UK Free Trade Deal Set to Boost £25.5 Billion in Annual Trade

The visit of India Prime Minister Narendra Modi to the UK is a milestone in India-UK relations as a Free Trade Agreement (FTE) will be signed. The deal includes major areas, including clean energy, technology,  defence and investment, since the latter is projected to increase bilateral trade between the two countries by an annual average of 25.5 billion pounds. The FTA caps the preceding 2021 roadmap 2030 with a wider roadmap 2035. The schedule of President Modi consists of his visits where he will meet UK PM Keir Starmer and King Charles III. This agreement will enhance strategic and economic relations between both democracies.

Context:

• An enhanced and deeper trading relationship as well as strategy is being sought by India and the UK particularly with regard to post Brexit and as India has embarked upon its economic diplomacy initiatives to expand its contact with the world. 

• FTA has reflected this change, and is in the agenda of the two nations relating to innovation, security, and sustainable development.

Key Points:

PM Narendra Modi’s visit to UK

• Key Meetings:

  • PM Keir Starmer

  • King Charles III

• UK-India 2035 Vision 

  • Replaces the earlier ‘2030 Roadmap’ signed in 2021.

  • Focus on a “modern, reinvigorated partnership”.

• Focus Areas:

  • Trade & Investment

  • Technology & Innovation

  • Climate and Clean Energy

  • Defence & Security

  • Migration and Mobility

Key Provisions of the Trade Agreement

Strategic and Economic Advantages

• Boosts the Comprehensive Strategic Partnership

• Builds on:

  • 2023 Tech & Security Programme

  • India UK Defence Industrial Cooperation

  • Current bilateral investment treaty (BIT) negotiations

• Peace brings employment, increases joint research and development and improves resilience in strategic sectors

Conclusion

India-UK Free Trade Agreement is the beginning of a new era of bilateral diplomacy. The bargain ensures a futuristic partnership between India and the UK due to better market access, lower tariffs, and commitment to Vision 2035 as a strategic initiative. It opens up the process of a more interrelated, safer, and economically dynamic relationship even in the next decades.