The agreement promises to significantly boost bilateral trade, targeting an annual increase of ₹3 trillion and aiming to double trade volumes within the next five years. Talks for the deal began on January 13, 2022, and were formally concluded after 14 rounds of discussions.
A Light Moment During Press Conference
After the signing ceremony, both leaders addressed a joint press conference. During the event, a light-hearted moment drew smiles when the translator tasked with interpreting PM Starmer’s remarks into Hindi encountered difficulty.
Noticing the struggle, Prime Minister Modi interjected with a supportive remark:
“No problem... you can use English words in between. Don’t worry.”
The translator, visibly relieved, thanked the Prime Minister and apologized. The exchange prompted laughter from both leaders, with PM Starmer adding, “I think we understand each other well.”
Key Highlights of the India-UK FTA
- 99% of Indian exports to the UK will get tariff relief, making Indian goods more affordable in the UK market.
- India will reduce duties on UK products, including whisky and luxury cars, from 15% to 3%.
- The agreement is expected to create jobs and contribute to India’s ambition of reaching $1 trillion in exports by 2030.
What gets cheaper?
- For Indian consumers: Scotch whisky, premium wines, luxury cars (Jaguar, Land Rover), branded clothing, furniture, and electronics.
- For UK consumers: Jewellery, gems, textiles, and homeware from India will become more affordable.
Whisky Market Impact
The duty cut on Scotch whisky is particularly notable for India—the world’s largest whisky market. Mark Kent, CEO of the Scotch Whisky Association, called the deal “transformational,” describing it as “a once-in-a-generation agreement and a historic moment for Scotch whisky exports.”
However, Indian liquor companies in the premium segment may face increased competition from imported brands.
Beyond Trade: Modi’s Message
Prime Minister Modi also invited UK PM Starmer to visit India, describing the Indian diaspora in the UK as a “living bridge” between the two nations. Modi urged strict action against those misusing democratic freedoms to weaken institutions, stressing that such actions must be held accountable.
Background:
In FY24, India exported goods worth $12.9 billion (₹1.12 lakh crore) to the UK. This FTA adds to India’s recent trade agreements with Mauritius, the UAE, Australia, and the EFTA. Negotiations with the European Union are currently underway
1.jpg)
.png)
.png)
2.png)
.png)
1.png)
2.png)
