Page 51 - NIS English 16-31 August 2025
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hen agreements are
made between two
democracies and
Wtwo major econo-
mies of the world, they promote
global stability and prosperity.
As the fourth largest economy in
the world, while India is moving
ahead with the fastest economic The Most Comprehensive Agreement
pace, it wants to develop itself
as the manufacturing hub of the With A Developed Country So Far
world with Make in India. With this Commerce and Industry Minister Piyush Goyal termed the free trade agreement
goal, on July 24, on the first day of as historic and said that India and the UK currently do bilateral trade of $56
Prime Minister Narendra Modi’s billion. After the agreement, this figure will double by 2030. Indian companies will
two-day visit to Britain, both coun- now get fair and nondiscriminatory access to the UK’s public procurement system.
tries signed the Comprehensive This is India’s most comprehensive agreement with a developed country so far.
Economic and Trade Agreement n Tariffs up to 16% in the UK will now end. India is likely to get
(CETA). Regarding this agreement, more than 5% market share in the UK in 1-2 years. Leather and
Prime Minister Modi said that this footwear exports will increase by more than $900 million due to
agreement is a symbol of new the FTA.
trust between two democratic
countries and two big economies n India’s agricultural products will get a better market in the UK.
of the world. Tariffs will be zeroed by the UK on more than 95% of agricultural
PM Modi, in a conversation with tariff lines. It is estimated to increase exports by more than 20% in
UK Prime Minister Keir Starmer, the next 3 years. Milk and edible oil have been excluded from this
said that this agreement will agreement to protect the interests of Indian farmers.
create new opportunities for our n UK tariffs on Indian marine products will end. This will further
farmers, MSMEs, and youth and strengthen India’s position in global marine exports.
will form a roadmap for a strong,
reliable, and ambitious partner- n India’s 1,659 engineering products will now enter the UK market
ship in the areas of technology, with zero import duty. Engineering products account for 17%
defence, climate, education, and of the total FTA coverage. After the agreement, the export of
people-to-people connection. PM these products to the UK in this sector is expected to double to
Modi also met King Charles III at $7.5 billion by 2029-30.
Sandringham House. During this, n Indian electronics products will also get entry into the UK with
he gifted a special plant to the king zero duty. Products like smartphones, optical fibre cables, and
under the ‘Ek Ped Maa Ke Naam’ inverters made in India will have a stronger hold in the UK market.
initiative. This plant will be planted n India’s medical device exports will also get a new direction from
this winter season.
this agreement. Products like X-ray and ECG machines, along
with Indian generic medicines, will have zero tariff in the UK.
BLUEPRINT OF
COLLABORATION WITH n India’s chemical exports are expected to increase by 30-40%.
INDIA-UK VISION 2035 Exports are estimated to reach $650-750 million in the financial
Prime Minister Narendra Modi year 2025-26.
and the UK PM Keir Starmer also n India currently exports gems and jewellery worth $941 million
agreed on India-UK Vision 2035 to the UK, of which $400 million comes from jewellery exports
as a 10-year roadmap of mutual alone. India’s position in the UK’s luxury and lifestyle segment
partnership between the two will be further strengthened. This export is expected to double
countries in the bilateral meeting. in the next 2-3 years.
August 16-31, 2025 || NEW INDIA SAMACHAR 49
