New Delhi: The Union Cabinet led by Prime Minister Narendra Modi approved an agreement on free trade in India, Charles University on Tuesday, and prepared a way for the expected formal signing of the contract during a modi visit to London on July 24th, said two government officials and asked not to be identified.
The agreement focused on strengthening trade and services between the two countries will be signed In the presence of Modi and British Prime Minister Keir Starmer, according to the first official who participates in the preparation for the ceremony of the signature.
Modi will start a four -day trip on Wednesday, which takes him to the UK and Maldives, with the signing of the free trade agreement (FTA) in London, which should be a key highlight. India and the United Kingdom concluded negotiations on Agreement 6. May after more than two years of interviews.
FTA – formally known as a comprehensive economic and business agreement – by 2030 it is issued to double bilateral trade to $ 120 billion by eliminating or significantly reducing customs duties to a wide range of products.
India is intended to benefit from zero mode for key exports to work, such as textiles, leather goods and shoes, while the United Kingdom will see a reduction in tariffs to luxury items such as Scotch whiskey and premium cars.
The British Parliament must ratify
The pact, which also includes chapters on services, innovations, public procurement rights, intellectual property rights, and anti -corruption will come into force after being ratified by the British Parliament, which may take another six months.
According to practice, the agreement will be signed by the Ministers of the Trade of both countries, but officials said that the presence of the Prime Minister would add political importance to this event.
The pact will indicate the first Indian main bilateral trade agreement with the developed Western economy, because the Government Modi accelerated its FTA agenda – part of a wider strategy to diversify export markets and attract investment.
“This agreement is of strategic importance beyond the scope of trade, especially at a time when India re -calibrates its global economic partnerships and interviews with us are two -sided business agreements,” said the first officials who participated in interviews.
India and the United Kingdom also concluded negotiations on the Social Security Agreement-the Convention on Dual Contributions-which will allow Indian experts to work in Britain on short-term tasks to avoid paying to the social security systems of both countries.
FTA does not include the mechanism of adjusting the boundaries of carbon boundaries (CBAM) -T. Carbon tax-in this stage, but but but but Both officials said it would start later.
Indian exports of goods to the UK increased by 12.6% to $ 14.5 billion in the years 2024-25, while imports grew slightly by 2.3% to $ 8.6 billion. The total bilateral trade was $ 21.34 billion in 2023-24, which is compared to 20.36 billion in the previous year.
(Tagstotranslate) India-UK Agreement on Free Trade (T) Prime Minister Narendra Modi (T) Bilateral Trade (T) Complex Economic and Trade Agreement (T) zero access to the market
