New Delhi, India – India’s Foreign Minister, Subrahmanyam Jaishankar, on Saturday lauded the recently concluded free trade agreement (FTA) with Britain as a “milestone” poised to significantly enhance bilateral relations. His remarks came as he welcomed his British counterpart, David Lammy, to New Delhi for a two-day visit.
The long-anticipated FTA between India and Britain was finalized last month, following the relaunch of negotiations in February. This agreement represents a key strategic move for Britain, which has actively sought to strengthen global trade ties in the post-Brexit era, a necessity underscored by recent global tariff uncertainties impacting economic growth.
“The recent conclusion of the India-UK FTA… is truly a milestone which will not only propel our two-way trade and investment but will also have a positive effect on other strategic aspects of our bilateral ties,” Jaishankar stated after his meeting with Lammy. He further emphasized that the accord “would also contribute to the strengthening of supply and value chains.”
The agreement is set to significantly reduce tariffs on a range of UK goods imported into India, including whisky, cosmetics, and medical devices. In reciprocation, Britain will decrease tariffs on Indian imports such as clothes, footwear, and food products, including frozen prawns.
With Britain and India ranking as the world’s sixth and fifth-largest economies, respectively, their existing trade relationship is valued at approximately £41 billion ($54.8 billion), supporting over 600,000 jobs across both nations. Both countries anticipate that the FTA will boost their bilateral trade by around £25.5 billion, providing a significant stimulus to the British economy and wages.
Negotiations for the trade deal, which had previously stalled under prior Conservative administrations in Britain, were successfully relaunched in February. Prior to his visit, Lammy expressed optimism about the agreement, stating it was “just the start of our ambitions.”
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