There has been a free trade agreement between India and Britain. The agreement in London was signed in London on Thursday in the presence of Prime Minister Narendra Modi and British Prime Minister Kir Stormer. Union Minister of Commerce Industry Piyush Goyal and British counterpart Jonathan Reynold signed the agreement. There was talk between the two countries for 3 years. After this agreement, the leaders held a joint press conference. During this, PM Modi expressed happiness calling the agreement as historic. However, the agreement is yet to be approved by the British Parliament. It can take from 6 months to 1 year.
This agreement will provide relief in tariffs i.e. import duty on 99 percent exports from India to Britain. This means that the tax on the goods which will be sent from India to Britain will either be reduced or completely eliminated. While this agreement will also be beneficial for Britain companies. Now they will be more ease of selling whiskey, cars and other products in India than before. India will reduce the tariff on these products to 15 percent to 3 percent. The agreement can increase trade between the two countries up to about 3 lakh crore rupees every year. Due to this free trade agreement, the youth of the country will get better opportunities. Skills, development and employee opportunities will be better. The service sector will get the most benefit from this.
This agreement will end the fees on about 99 percent exports of India. Which will give Indian goods widespread and easy in the British market. This will boost exports in areas such as agriculture and food processing. While fees ranging from 8 percent to 20 percent have been abolished from labor-dominated areas such as textile, sea products, chemicals, electronics, and pharmaceuticals. Apart from this, the duty of up to 70 percent of 99.7 percent products in the processed food category has been reduced to zero. Indian farmers will get new possibilities in the UK market for high -value agricultural products such as basmati rice, mango, grapes, tea, spices, dairy products, and seafood.
This agreement will be available at a low price in India from UK. However, after this deal, domestic liquor companies will get competition, which are moving rapidly in the premium alcohol market. Along with this FTA, both countries have also signed a double social security convention. Which will give Indian employees exempted from social security contribution while working in UK, which will benefit both employment and employees.
These can be the same cheap
- Britain’s luxury cars can now be available at a lower price.
- The tariff on alcohol and wine coming from England will be reduced, which will make it cheaper than before.
- Branded clothes, fashion products and homeware coming from Britain can also be cheap.
- Furniture, electronics and industrial machinery coming from Britain can now be found at low prices.
- India’s gems and jewelery will sell cheap in Britain, which can make products cheap for Indian customers in Britain.
Expected to be doubled business in next five years
FTA means Free Trade Agreement, which is called ‘Free Trade Agreement’ in Hindi. This is an agreement between two or more countries, so that they can easily trade goods and services among themselves and impose less tax (duty) on it or do not impose tax at all. This benefits the companies of both countries, because their goods become cheaper, due to which people shop more.
What did Prime Minister Modi say?
Regarding the agreement between the two countries, Prime Minister Narendra Modi said that I am happy that after many years of hard work, there has been a comprehensive economic trade agreement between the two countries today. Indian textiles, footwear, james and jewelery, sea food and engineering goods will get better market access in the UK. India’s agricultural products and processed food industry will create new opportunities in the UK market. The PM said that this agreement will prove to be particularly beneficial for the youth, farmers, fishermen and MSME sector of India. On the other hand, the people of India and the UK products such as medical devices and aerospace parts will be able to be available at accessible and affordable rates for the industry.
