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The meeting was held between PM Modi and British Prime Minister Kir Stmper during the G20 Summit held on 19 November 2024 at Rio de Janeiro, Brazil.
PM Modi will leave for a two -day tour of Britain on Tuesday today. This is his third UK trip. Here he is going to the invitation of British Prime Minister Kir Stmper.
This is Modi’s first visit to Britain after Kir Stmper became Prime Minister. PM can also meet British Emperor King Charles.
There will be a bilateral meeting between PM Modi and the stormer in London. In this, there will be talks between the two on issues like Indo-UK Free Trade Agreement (FTA), Defense, Technology and Climate.
There was a conversation between the two countries for more than 3 years, which has now been completed.
PM Modi last visited Britain in November 2021. He attended the COP26 in Glasgow, Scotland.
Doubling of business in 5 years purpose
During this visit by PM Modi, a free trade agreement (FTA) can be signed after a three -year talks between India and the United Kingdom (UK). According to media reports, the legal process of the agreement of the agreement has been completed.
FTA means free trade agreement, which is called ‘Free Trade Agreement’ in Hindi. This is an agreement between two or more countries, so that they can easily trade goods and services among themselves, and impose less tax (duty) on it or do not impose tax at all.
This benefits the companies of both countries, because their goods become cheaper, which makes people shop more.
FTA will take 1 year to get approval
Commerce and Industry Minister Piyush Goyal is also on a UK visit along with PM Modi. He has a major role in a conversation related to FTA. After a signature between the two countries on FTA, it will be necessary to get approval from the Cabinet of India and the Parliament of Britain. It can take from 6 months to 1 year.
Earlier on May 6, the deal was finalized between the two countries. After a signing of the agreement, it will have to take approval from the British Parliament and the cabinet of India.
FTA aims to double bilateral trade to $ 120 billion by 2030. After the agreement is signed, the export tax in UK will be over on labor-entrants like leather, footwear, textile, toys, james and jewelery of India.
At the same time, products like British whiskey, cars will become cheaper in India. After the deal, trade between the two countries is expected to reach $ 120 billion by 2030. Along with this, new employment is expected in areas like digital, engineering, marketing in both countries.
These goods can be cheaper by the agreement between the two countries-
- Cars: Britain’s luxury cars such as Jaguar Land Rover can now be available at a low price.
- Scotch whiskey and wine: The tariff on alcohol and wine coming from England will be reduced, which will make it cheaper than before.
- Fashion and Clothes: Branded clothes, fashion products and homeware coming from Britain can also be cheap.
- Furniture and Electrical goods: Furniture, electronics and industrial machinery coming from Britain can now be found at a low price.
- Jewelery and Gems: India’s gems and jewelery will be sold cheaply in Britain, which can make products cheap for Indian customers in Britain.
Domestic liquor companies will get competition
Due to this agreement, U.K. The whiskey coming from will be available at a low price in India, which is the largest whiskey market in the world. However, after this deal, domestic liquor companies will get competition, which are moving rapidly in the premium alcohol market.
Mark Kent, CEO of the Scotch Whiskey Association, described the deal as ‘transformational’ and said, “The UK-India Free Trade Agreement is a one-time deal in a generation and a historic moment for Scotch Whiskey Export in the world’s largest whiskey market.”
What will India benefit from free trade deal?
This deal will boost Indian exports and jobs will also be created. India had a merchandise export of a value of $ 12.9 billion in FY 24, or Rs 1.12 lakh crore, to the UK. The deal will help India achieve the 1 trillion export target by 2030. Access to the developed market will also increase.
The conversation between India and the UK started on 13 January 2022, which has now been completed after about 3.5 years. On February 24, Commerce and Industry Minister Piyush Goyal and UK business and trade secretary Jonathan Rrenalds announced to resume the proposed FTA between the two countries.
Since 2014, India has signed 3 such free trade agreement with Mauritius, UAE, Australia and EFTA (European Free Trade Association). India is actively negotiating on similar agreements with the European Union (EU).
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Read this news related to FTA …
India-UK may sign the next week FTA: UK’s luxury cars-branded clothes will be cheap; 3 years conversation for the agreement
After three years of talks, the Free Trade Agreement (FTA) can be signed next week between India and the United Kingdom (UK). According to media reports, the legal process of the agreement of the agreement has been completed. Read full news here …
