The India-UK Free Trade Agreement (FTA), finalized on Thursday, is expected to add $34 billion to bilateral trade annually, marking a significant milestone in the economic ties between the two countries.

The deal is set to be signed in the presence of Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer. Alongside the FTA, the two leaders will unveil the “UK-India Vision 2035”, a roadmap for expanding cooperation across trade, defense, innovation, and climate change.

The FTA promises immediate benefits for Indian consumers, with the UK reducing tariffs on Indian products from an average of 15% to just 3%. This will make British goods like soft drinks, cosmetics, cars, and medical devices more affordable. For UK consumers, the deal also opens doors for greater access to Indian products, benefiting both markets.

With India already exporting goods worth £11 billion to the UK, the FTA will ease market entry for Indian businesses, potentially driving a surge in exports. The tariff reductions will provide fresh growth opportunities, particularly for sectors like textiles, pharmaceuticals, and IT.

According to media reports, the deal is expected to boost bilateral trade by £25.5 billion (approx. $34 billion) annually, enhancing economic cooperation and paving the way for deeper strategic relations between India and the UK.

The UK-India Vision 2035 goes beyond trade, focusing on defense, climate change, and education. The agreement includes a Defense Industrial Roadmap to enhance defense collaboration and a commitment to addressing global challenges like climate change. It also aims to expand educational exchanges and foster innovation partnerships between the two nations.

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