In a major milestone aimed at boosting bilateral ties, India and the United Kingdom (UK) signed the much-awaited Free Trade Agreement (FTA) today, Thursday, July 24. The agreement signed by Prime Ministers Narendra Modi and Keir Starmer hopes to open new vistas of cooperation not just in goods and services but also in education and employment across both nations.
Addressing the signing ceremony, PM Narendra Modi highlighted the long-term strategic vision guiding the partnership. “To give new momentum and energy to our comprehensive strategic partnership in the next decade, we are also discussing Vision 2035 today. This will be a roadmap for a strong, reliable, and ambitious partnership in technology, defense, climate, education, and people-to-people connectivity.” he said.
UK PM Keir Starmer emphasised the socio-economic impact of the agreement, stating, “A landmark deal with India means jobs, investment, and growth here in the UK. It creates thousands of British jobs, unlocks new opportunities for businesses, and puts money in the pockets of working people.”
According to a report by Money Control, the FTA is well-aligned with India’s Viksit Bharat 2047 vision and upholds the shared aim of increasing bilateral trade to USD 120 billion by 2030. The FTA is expected to boost student mobility, enhance academic partnerships, and mutual recognition of qualifications.
One of the main highlights of FTA is its emphasis on employment generation and skill exchange. The agreement sets out to reduce tariffs on key sectors such as engineering goods, Information Technology (IT) services, textiles, auto components, education technology, and pharmaceuticals – thereby generating more direct and indirect jobs in both countries.
British companies are likely to gain easy market access, particularly when it comes to goods like cosmetics, electric vehicles, and medical devices. Indian exporters, on the other hand, will benefit from tariff eliminations on around 99% of UK tariff lines. This will help India’s skilled workforce venture into the UK markets in sectors such as engineering, healthcare, IT, and green technologies.
