New Delhi [India], May 9 (ANI): The recently concluded Freedominmotion
Trade Agreement
(
FTA
The economic partnership anticipated between India and the United Kingdom is likely to be advantageous for both countries financially. Additionally, this agreement might set a precedent for comparable deals with other nations including the United States and members of the European Union, according to a report from Bank of Baroda.
The report pointed out that although the UK might not currently be one of India’s leading trade partners, the situation could evolve.
FTA
This represents a considerable advancement. It paves the way for more extensive trade relationships with key worldwide economic powers and clearly indicates India’s dedication to enhancing global commerce.
The statement read, “Although the United Kingdom individually does not hold substantial importance as a trading partner for India, this agreement opens doors for comparable deals with nations such as the United States and European Union, thus boding well for India.”
India and the UK have declared the successful completion of this mutually advantageous partnership.
FTA
, describing it as a contemporary, all-encompassing, and progressive accord.
The document further indicated that the agreement aligns with India’s strategic objective to achieve developed nation status by 2047 as part of the ‘Viksit Bharat’ initiative. Additionally, it supports the economic development goals of both nations involved.
A major feature of this accord is extensive market access it offers across multiple industries. India stands to benefit significantly as approximately 99 percent of tariff lines will have their duties removed, encompassing almost all traded goods.
This is anticipated to create substantial prospects for Indian exports and considerably enhance two-way commerce.
On the UK’s side, the government projects that the agreement will boost the nation’s GDP by £4.8 billion and lift annual wages by £2.2 billion in the long term.
In the case of India, the agreement includes eliminating or lowering duties on 90 percent of all product categories, encompassing 92 percent of goods coming into the country from the United Kingdom according to figures from 2022. These reductions can lead to savings exceeding £400 million annually, potentially increasing twofold to approximately £900 million within a decade.
A key sector addressed in this agreement is automobiles. British automotive producers stand to gain from lower duties, which would decrease from their current rate to 10 percent within a quota framework.
The report indicated that at first, this would pertain to internal combustion engine (ICE) vehicles before extending to cover electric vehicles (EVs) and hybrid models, in line with the progression of the UK’s automotive sector.
Likewise, Indian exporters will gain phased entry into the UK market for EVs and hybrids through a quota system, aiding Britain’s shift towards electric transportation.
Overall, the India-UK
FTA
is anticipated to boost trade volumes, decrease transaction expenses, and reinforce economic relationships between the nations involved, paving the way for potential agreements with additional international allies. (ANI)
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