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.

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Prime Minister Modi will be on a tour of Britain and Maldives between July 23-26. PM Modi will first reach the UK on July 23 and will attend several bilateral programs in London. PM Modi will meet UK Prime Minister Sir Kir Stmper on July 24.

Sources are being quoted as saying that during PM Modi’s visit, Free Trade Agreement (FTA) can also be announced between India and the UK. FTA is said to be very important for both India and the UK. Especially keeping in mind the new tariff policy of US President Trump.

There will be discussion about bilateral relations with Prime Minister Kir Stmper

This will be PM Modi’s fourth visit to UK. During this visit, Prime Minister Modi will hold extensive discussions with Prime Minister Starmer on the entire aspects of India-UK bilateral relations. The two leaders will also exchange ideas on issues of regional and global importance.

King Charles III and PM Modi may meet

During this time, Prime Minister Modi and King Charles III of UK are also expected to meet. During this visit, both sides will also review the progress of comprehensive strategic partnership (CSP), focusing special focus on trade and economy, technology and innovation, defense and safety, climate, health, education and people.

PM Modi will visit Maldives on 25-26 July

At the same time, in the second phase of his visit, Prime Minister Modi will be on a visit to Maldives on 25-26 July. On the invitation of Dr. Mohammad Mujju, President of Maldives, PM Modi will visit Maldives. This will be Prime Minister Modi’s third visit to Maldives and PM Modi’s first visit to Maldives during Dr. Mohammad Mujju’s President’s period.

PM Modi will be the chief guest of Maldives’s 60th independence ceremony

In Maldives, Prime Minister Modi will be the chief guest at the 60th anniversary of Maldives on 26 July. During this visit, PM Modi will meet the President of Maldives, Dr. Mohammad Muizzu and discuss issues of mutual interest. The two leaders will also take stock of the progress made in the implementation of the India-Maldives joint approach for the comprehensive economic and maritime security partnership of the President of Maldives in October 2024.

This journey shows the importance of India to its sea neighbor, Maldives, whose neighbor’s first policy and vision remains a special place in the ocean. This journey will give both sides an opportunity to deepen and strengthen their close bilateral relations.

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