• Source:JND
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PM Modi UK Visit:  Prime Minister Narendra Modi is set to undertake a critical state visit to the United Kingdom from July 23 to 26 on the invitation of British Prime Minister Keir Starmer. The visit comes at a pivotal moment for India-UK relations as both nations prepare to formally sign a long-awaited India-UK Free Trade Agreement (FTA), which could double bilateral trade to USD 120 billion by 2030 and open vast new opportunities for Indian businesses and professionals. Addressing an event organised by the PHD Chamber of Commerce and Industry (PHDCCI) in New Delhi, Anna Shotbolt, Deputy Trade Commissioner for South Asia in the British High Commission, noted that the FTA is expected to increase bilateral trade by 25.5 billion pounds annually. According to the agreement, duties on 90 per cent of the goods exchanged between the two countries will be lowered or even cut to zero, making Indian goods competitive in the UK market.

Why The Free Trade Agreement Matters?

Lowered Prices Of Imports, Export-Oriented Sectors Boost

The FTA will also reduce British imports' cost for Indian products, such as luxury cars, Scotch whisky, and medical equipment, making them more accessible to Indian consumers at a lower cost and increasing domestic competition.

Social Security Relief And Professional Opportunities

One of the key highlights of the agreement is the Double Taxation Avoidance Convention, which will exempt employers of Indian professionals from the double social security contributions for three years. This will provide relief to thousands of Indian workers and businesses sending talent to the UK, and make cross-border employment more desirable and affordable. The services sector, which is a core driver of India's economy, will also benefit as the FTA opens up market access for Indian professionals in information technology, finance, architecture, and education. Enhancements in stronger copyright protections and streamlined digital trade rules will also benefit India's creative and tech sectors.

No Concessions On Sensitive Agricultural Products

Notably, India has protected its domestic agricultural interests by retaining sensitive farm items like dairy, apples, and cheese from the tariff concessions. This way, local farmers are protected while India continues to enjoy increased market access in non-sensitive areas.

A New Era For India-UK Strategic Partnership

Prime Minister Modi’s UK visit will mark his fourth trip to Britain and underscores the strategic importance of India-UK ties. During his stay, he will hold wide-ranging discussions with Prime Minister Keir Starmer covering the entire spectrum of bilateral relations, from trade, defence, and security cooperation to climate change, technology, health, education, and people-to-people exchanges. PM Modi is also expected to call on King Charles III. As per the Ministry of External Affairs (MEA), the two heads will discuss the progress under the framework of the Comprehensive Strategic Partnership (CSP), providing fresh momentum to intensive cooperation in areas of priority.

A Win-Win For Both Nations

Industry leaders have greeted the agreement. Ranjeet Mehta, PHDCCI Secretary General and CEO, pointed out that the social security clause of the FTA alone would create huge opportunities for Indian professionals. The chamber intends to lead a massive business delegation to the UK in September to tap new opportunities under the new trade order. TS Vishwanath, Founder & Executive Chairman at VeK Policy Advisory & Resource Firm, said to ANI that the agreement is not only about trade, it's about fostering mutual experience and a strong ease of doing business ecosystem to lure bilateral investments.

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The agreement is also being viewed as a huge success for India's MSMEs. IIFT Vice Chancellor Prof. Rakesh Mohan Joshi noted that India's USD 1 trillion retail market holds huge potential for British companies, and that Indian MSMEs can access Britain's USD 386 billion retail market. Emphasizing niche sectors, Toy Association of India President Ajay Aggarwal stated to ANI that India's domestic toy production industry is growing rapidly these days, now manufacturing 80 per cent of its requirements domestically.

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With the reduction of tariffs, Indian toys, be they skilled ones such as leather toys, can reach further markets in the UK, making India an even more competitive global supplier. Experts cited by ANI agree that the India-UK FTA is a strategic win-win deal. It will boost Indian exports, make high-quality imports cheaper for Indian consumers, create new job opportunities, and deepen economic ties between the two historic partners. As PM Modi’s visit sets the stage for its formal signing, the agreement promises to usher in a new era of Indo-British cooperation, driving growth and prosperity for both nations.