India-UK FTA ushers a new era in trade between two nations: FM Sitharaman

New Delhi: The India-UK free trade agreement (FTA) ushers a new era in trade between the two countries, Finance Minister Nirmala Sitharaman has said.

Prime Minister Narendra Modi and his UK counterpart Sir Keir Starmer on Tuesday announced the successful conclusion of a mutually beneficial India – UK FTA and 99 per cent Indian exports are set to benefit from zero duty.

In a post on X social media platform, FM Sitharaman said that under PM Modi’s leadership, India will be an engine of growth.

“This agreement will mean greater market access to Indian exporters. Industries and innovation can flourish,” the Finance Minister added.

“Signing bilateral agreements is the order of the day today. Multilateral agreements were in currency for sometime but today seems to be the time for countries to chalk their own bilateral arrangements,” she mentioned during a plenary session of the ‘NEXT Milan Forum’ at Bocconi University in Milan, Italy.

The FTA takes place in the backdrop of growing economic relations between India and the UK as exemplified in the bilateral trade of about $60 billion which is projected to double by 2030.

This comprehensive and forward-looking agreement is the culmination of intense negotiations aimed at deepening trade and investment ties across a range of sectors, including goods, services and technology.

It is designed to promote sustainable and inclusive economic growth, ensure resilient supply chains and generate high-quality employment in India, according to the government.

The FTA ensures comprehensive market access for goods, across all sectors, covering all of India’s export interests. India will gain from tariff elimination on about 99 per cent of the tariff lines covering almost 100 per cent of the trade value offering huge opportunities for increase in the bilateral trade between India and the UK.

India will benefit from one of the most ambitious FTA commitment from the UK in Services such as IT/ITeS, financial services, professional services, other business services and educational services, opening up new opportunities and jobs.

The exemption for Indian workers who are temporarily in the UK and their employers from paying social security contributions in the UK for a period of three years under the Double Contribution Convention will lead to significant financial gains for the Indian service providers and enhance their competitiveness in the UK market that would create new job opportunities as well as benefit large number of Indians working in the UK.

India has ensured that non-tariff barriers are suitably addressed to ensure free flow of goods and services and that they do not create unjustified restrictions to India’s exports.

—IANS