As Prime Minister Narendra Modi prepares for her highly anticipated journey to Great Britain – his first since Keir Starmer came to power – the cabinet approved an agreement on free trade on Tuesday, PTI news agency reported and quoted resources. The pact that PM Modi described as a “Memory Agreement” will be signed during a visit to the Prime Minister in London this week. Modi will be accompanied by the Minister of Commerce and Industry Piyush Goyal.
Both countries announced the conclusion of the negotiations on the Term Agreement 6 May, where Starmer described it as the British “largest trade agreement” from Brexit.
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These discussions come at a time when Trump’s expenditure in the United States seeks to transform global business rules by storing a wool of tariffs.
As soon as the free trade agreement has been signed, it will require the British Parliament’s approval before it can be able. The Indian free trade agreement in India (FTA) will enter into force after signing and ratification in both countries.
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This step is likely to strengthen the main industries such as fabric, leather, shoes, sports goods, toys, marine products, gems and jewelry, engineering goods, car and engines and organic chemicals.
On the basis of an agreement of India, we will reduce tariffs to 90 % of the British goods, with 85 % becoming completely without customs duties over 10 years. In return, Britain agreed to reduce its tariffs to certain products, resulting in 99 % of Indian exports to Great Britain facing zero duties.
Currently, India-UK trade is approximately 2 % of India’s total trade, which underlines the lack of partnership due to the size and potential of both economies.
Currently, the United Kingdom is selected 8-12 % of the clothing and home fabrics imported from India. Since tariffs are excluded to 99 % of Indian goods, including textiles, incremental capacities will probably be added in the next 4-5 years.
(With PTI inputs)
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