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India-UK FTA: The India-UK Free Trade Agreement, signed by Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, is set to revolutionise trade ties between the two nations. Union Minister for Commerce and Industry Piyush Goyal described the pact as "game-changing" for Indian farmers, MSMEs, fishermen, young entrepreneurs, and businessmen.
Goyal, while addressing a press conference, said that the agreement is the biggest and most comprehensive FTA signed by India to date.
Once implemented, the deal will make 99 per cent of Indian exports to the UK duty-free, providing a substantial push to the country’s economy. Cabinet approval for the deal has already been granted in India, while it now awaits clearance from the UK Parliament.
“PM Narendra Modi and UK PM Keir Starmer signed a Free Trade Agreement. Cabinet approval has been given in India, but Parliamentary approval in the UK is pending. It will be a game-changing FTA that will provide immense opportunities and benefits to India's farmers, businessmen, MSMEs, youngsters, and fishermen. Out of all FTAs signed so far, the India-UK FTA has been the biggest, most comprehensive, and most important... This FTA has been signed on our terms... 99 per cent of our exports will be able to go to the UK, duty-free...,” said commerce minister.
Signed with partners, not competitors: Goyal attacks UPA
In a direct comparison with past trade agreements, Goyal slammed the UPA-era FTAs, claiming they were inked with countries that harmed India’s manufacturing sector by dumping cheap goods. In contrast, he said, the Modi government has pursued FTAs with nations that complement India’s economic structure, including the UK, Mauritius, Australia, UAE, and EFTA countries.
“UPA government signed FTAs with our competitors, with those countries who would sell their products in India for cheaper prices to destroy India's manufacturing sector... The FTAs signed during the UPA rule were not in the best interests of the country. FTAs signed by PM Narendra Modi are with Mauritius, Australia, EFTA countries, UAE, and now the UK. Discussions are underway with other developed countries. India now signs FTAs with countries that do not compete with us, but complement us. The UK-India Comprehensive Economic and Trade Agreement will prove to be a stepping stone towards our dream of a Viksit Bharat...,” said Goyal.
Protecting India's heritage and GI products
The agreement also includes provisions for protecting India’s intellectual property and geographical indication (GI) products. Highlighting a specific case, Goyal mentioned how the Commerce Ministry acted swiftly when a global brand used the Kolhapuri chappal design without permission. The new agreement ensures India gets due recognition and value for such traditional crafts.
“... When a global brand used the design of our Kolhapuri chappals, the Commerce Ministry immediately took action on it. Going forward, when the Kolhapuri chappal is exported, India will get the due credit for its design. It is India's GI product. Many global brands are expressing their desire to associate their names with India's products and sell them in global markets. The Kolhapuri Chappal can have a business of Rs 8000-1000 crores in the international market,” added Goyal.
Trade to touch $120 billion by 2030
During PM Modi’s two-day UK visit, both countries also reiterated their aim of increasing bilateral trade to USD 120 billion by 2030. As part of the deal, India’s average tariffs on UK imports will come down from 15 per cent to 3 per cent, according to the British government.
The FTA is aligned with India’s vision of becoming a developed nation by 2047, or Viksit Bharat, and is expected to serve the growth aspirations of both economies.
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