India-uk fta: After a long conversation lasted for nearly three years, there is going to be a free trade agreement between India and Britain. The agreement is likely to be approved on Thursday during PM Modi’s visit to UK. This is the fourth visit of PM Modi after becoming Prime Minister in 2014, when he will discuss business, energy, health, safety and education with his counterpart Keer Stmper.

This is the first time in a decade when India is going to have an important bilateral agreement with a developed economy. It is believed that it will take a year to pass by legally passing from the British Parliament and the Indian Union Cabinet.

What is the purpose of free trade agreement?

Indeed, the purpose of setting up free trade agreement is to promote bilateral trade and investment between the two countries. At present, more than one thousand Indian companies are doing business in Britain. Of these, more than one lakh people have got employment and invested 20 billion dollars (ie 1.73 lakh crore rupees).

On the other hand, UK has invested $ 36 billion (ie about 3.11 lakh crore rupees) in India, which is the largest investor in the sixth world in India.

Now the question is arising that what is going to benefit from India and Britain to have a free trade agreement?

Benefits to Britain

After the free trade agreement, about 99 percent of the goods exported from India will be zero. The direct benefit of free trade agreement will be on the prices of India’s textile industry, shoes, auto parts, jewelery, furniture, sports items, chemicals and machinery. At this time, one has to pay a tariff from four to 16 percent in the UK. Along with this, the manufacturer of electric and hybrid vehicles made in India will also take advantage of this new quota system.

Benefits for India

After the free trade agreement, the customs charged from UK imported from Britain will reduce 75 percent to 150 percent immediately. With this, it will be seen to be reduced by 40 percent for the next 10 years. Along with this, the tariffs under the quota system will be reduced to only 10 percent on the vehicles built in Britain, at this time. Apart from this, tariff rates of cosmetics, biscuits, salmon fish and medical equipment will be cut a lot and all these things will start getting at a low price.

Also read: 6000 GST notice issued on UPI transaction in this state, stir in businessmen, threat to hit the road against action