India and UK Poised to Seal Landmark Free Trade Agreement

India and the UK are set to sign a significant Free Trade Agreement (FTA) during PM Modi's UK visit. The Comprehensive Economic and Trade Agreement will eliminate tariffs, bolster key industries, and enhance bilateral trade. The deal is anticipated to nearly double trade to USD 120 billion by 2030.

In a historic move, India and the United Kingdom are set to finalize a pivotal Free Trade Agreement (FTA) during Prime Minister Narendra Modi's visit to the UK. The Comprehensive Economic and Trade Agreement (CEPA), approved by India's Union Cabinet, is expected to be officially signed on Thursday with the presence of UK Prime Minister Keir Starmer.

The trade deal aims to significantly boost trade between the two nations to USD 120 billion by 2030 by eliminating tariffs that currently hinder exports. Notably, India is set to benefit as tariffs will be removed or reduced on approximately 99% of its exports to the UK. Significant sectors such as textiles, engineering goods, and organic chemicals stand to gain substantially.

The UK will also benefit, particularly in the food and drinks sector, with a notable impact on Scotch whisky exports. Tariffs, currently at 150%, will fall, reaching a low of 40% in ten years. Additionally, the agreement simplifies mobility for Indian professionals and lays the groundwork for growth in IT and financial services.

(With inputs from agencies.)