Virendra Pandit
New Delhi: The landmark bilateral Free Trade Agreement (FTA) between India and the UK on Thursday has been greeted by business circles in both the countries and beyond.
It will help increase trade between the two countries by at least USD 20 billion, and lead to the creation of more jobs, Vedanta Group Chairman Anil Agarwal said, according to media reports.
The world’s fifth and sixth-largest economies signed a historic FTA that will cut tariffs on goods from cosmetics and textiles to whisky and cars, and allow more market access for businesses in the two nations.
The pact was signed during Prime Minister Narendra Modi’s visit to the UK.
“I congratulate PM Modi and (UK) Prime Minister (Keir) Starmer for this historic agreement,” Agarwal said. “This is a great achievement between Britain and India as they walk down the progressive path.”
The deal has been struck after three years of talks, he said, adding that a lot of hard work has gone into reaching the agreement.
“The FTA will be a win-win for both countries. It will boost economic activity and create many more jobs and opportunities for entrepreneurship in both countries,” he said. “This will help both countries to increase the trade by at least USD 20 billion.”
Agarwal said he has closely seen the economic engagement between India and the UK grow substantially over the last two decades.
“We made a great partnership, be it trade, investment or people-to-people links,” he added.
The deal, the UK’s biggest such agreement since Brexit and India’s first with a European economy, aims to expand bilateral trade.
British company bp India (formerly British Petroleum) has also welcomed the FTA, saying it will boost energy cooperation and investments.
The long-awaited FTA will pave the way for increased collaboration and investment in the energy sector, including in renewables, Kartikeya Dube, Head of Country and Chairman bp India, said.
“The UK India Free Trade Agreement (FTA) is a great step towards enhancing a trade relationship between the two partner nations,” he said.
The deal aims to expand the 42.6 billion pound trade by another 25.5 billion pounds by 2040, the reports said.
“This will only enhance easier trade of goods and services, but will also enable a seamless flow of talent and expertise,” Dube said. “In the energy sector, this will encourage collaborations and investments, including renewables.”
Under the FTA, 99 percent of Indian exports will face zero duties in the UK. In return, Britain’s exports to India will see a 90 percent cut in duties, with most goods becoming fully tariff-free within a decade.
While India has opened up its market to several categories of consumer goods, including chocolates, biscuits, meats and cosmetics, New Delhi will get to export textiles, footwear, sports goods and toys, among others, to the UK.