London, July 24
: Stressing that the Free Trade Agreement (FTA) between India and the UK will benefit both the nations, British Prime Minister Keir Starmer on Thursday called the deal the "biggest and most economically significant trade deal" that the country has undertaken since after leaving the European Union (EU). He stated that India-UK FTA will boost wages, raise living standards and put more money in the pockets of the working class.
While making a press statement alongside Prime Minister Narendra Modi in London on Thursday, Starmer said that the FTA deal is good for British workers in cutting edge manufacturing, whiskey distillers across Scotland and the service sector in London, Manchester and in Leeds as it will bring the prices down on Indian goods in the UK.
He said, "It is a deal which will bring benefit to both of our countries, boosting wages, raising living standards and putting more money in the pockets of working...It is good for jobs. It is good for business, cutting tariffs, making trade cheaper, quicker and easier. It is good for British workers in cutting edge manufacturing, whiskey distillers across Scotland and the service sector in London, Manchester and in Leeds. It is good for consumers because it will bring down prices on Indian goods in the United Kingdom, like the clothes and shoes and food and it will deliver benefits for the long term."
"It will add about 4.8 billion pounds to the UK economy every year and 2.2 billion pounds to wages and hundreds of millions of pounds to the regions and nations up and down the United Kingdom. We both know this is the biggest and most economically significant trade deal that the UK has made since leaving the EU and I think I can say it is one of the most comprehensive deals that India has ever done. So, thank you Prime Minister for your leadership and for your pragmatism and I would like to thank everybody who has worked so hard to get this deal over the line," he added.
PM Modi and his British counterpart on Thursday signed the much-awaited Free Trade Agreement (FTA), which will boost annual bilateral trade by about USD 34 billion. As part of the landmark FTA, India will cut tariffs on 90 per cent of the UK products, while the UK will reduce duties on 99 per cent of Indian exports, significantly cutting tariff lines and regulatory processes across sectors.
Keir Starmer said, "As I have said before and as we were just discussing...we have entered a new global era and that is one requires us to step up, not stand aside, to deliver for the British people by building deeper partnerships and alliances and today is very much confirmation of that approach."
He noted that the FTA with India sends a powerful message that, "UK is opening for business and that is already generating huge confidence."
"The UK has been negotiating a deal like this for many years but it is this government that got it done and with it we are sending a very powerful message that UK is opening for business and that is already generating huge confidence. Today, we are announcing nearly six billion pounds in investments and export...between India and the United Kingdom, creating 2200 jobs for the British workers."
Starmer also announced that the two nations are also launching India-UK Vision 2035 Strategy, vowing to work more closely in sectors such as defence, migration, climate change, education and health.
"As we have discussed this morning this is not the extent of the limits of our collaboration with India. We have unique bonds of history, of family and of culture and we want to strengthen our relationship further so that it is even more ambitious, modern and focused on the long-term. The step-up in the relationship we discussed in the autumn of last year and that's why alongside this trade deal, I am delighted that we are building on our partnership by launching India-UK Vision 2035 Strategy, pledging to work more closely on areas such as defence, migration, climate change, education and health," he said.
"We will also build on the fantastic work we already do in technology and innovation, celebrating the one year anniversary of the landmark Technology Security Initiative, making the most of the opportunities it represents for both of our countries," he added.
Earlier, PM Modi called on Starmer at the Chequers Estate - the countryside retreat of the Prime Minister of the United Kingdom - as he began official engagements on his fourth visit to the country. PM Modi is on a two-day official visit to the UK at the invitation of his British counterpart.
— IANS
Reader Comments
While the economic benefits are clear, I hope our government ensures proper safeguards for Indian farmers and local industries. The UK's agricultural sector is highly subsidized - we must protect our farmers from unfair competition.
The defense collaboration part excites me the most! With the Vision 2035 Strategy, we can finally get access to advanced British military tech. Jai Hind! 🇮🇳
As an NRI in London, I'm thrilled about easier movement between our countries. The migration partnership could mean simpler visa processes for skilled Indians. This deal benefits both nations equally!
₹34 billion boost to bilateral trade is massive! But I wonder - will this lead to cheaper Scotch whisky in India? Asking for a friend 😉
The technology collaboration is promising, but I hope we focus on indigenous R&D too. We shouldn't become just a market for British tech - we must co-develop and own IPs.
As someone who's worked in UK-India trade for years, this is long overdue! The paperwork reduction alone will save companies millions. Finally some pragmatism in international relations.
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