U.K. and India sign ‘Comprehensive Economic and Trade Agreement’

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U.K. and India sign 'Comprehensive Economic and Trade Agreement'

U.K. and India sign 'Comprehensive Economic and Trade Agreement'

British Prime Minister Keir Starmer and India’s Prime Minister Narendra Modi met on Thursday to sign a trade agreement between the two nations. Pool Photo by Chris J. Ratcliffe/EPA

Britain and India agreed to a free trade agreement between their two nations Thursday.

“A new chapter begins today in the India-U.K. economic partnership,” said Indian Prime Minister Narendra Modi on his social media platform Thursday. “The signing of the Comprehensive Economic and Trade Agreement reflects our shared commitment to enhancing trade, driving inclusive growth and creating opportunities for farmers, women, youth, [Micro, Small, and Medium Enterprises] and professionals.”

The deal is expected to inject over $6.5 billion into the British economy and create more than $8 billion by way of investments from companies based in both countries.

“Our landmark trade deal with India is a major win for Britain,” British Prime Minister Keir Starmer posted to X Thursday. “This is about putting more money in the pockets of hardworking Brits and helping families with the cost of living.”

Modi and Starmer met and held a press conference on Thursday at Starmer’s country house in Buckinghamshire County.

Job growth in sectors such as technology, aerospace and manufacturing is expected, as noted in a press release from the U.K. Thursday.

“Thanks to the deal, British workers will enjoy a collective uplift in wages of [nearly $3 billion] each year and could also see cheaper prices and more choice on clothes, shoes, and food products,” the statement said.

Scottish Labor Party MP Ian Murray praised the deal online Thursday.

“The India Trade Deal is great news for Scottish jobs and business,” Murray posted to X. “The landmark agreement will deliver [an over $257 million] boost for the Scottish economy as part of the Plan for Change.”

The U.K. Plan for Change are the current goals sought to achieve by the current British government.

The agreement is also anticipated to make imported goods cheaper for Indian consumers, according to a press release from the Indian government Thursday, which would include luxury cars, gin, Scotch whisky, cosmetics and medical devices.

“Within the next two years, India’s leather industry is projected to increase its market share in the U.K. by 5%,” the release said.

Bharti Enterprises conglomerate Founder and Chairman Sunil Bharti Mittal accompanied Modi as a delegate to meet with Starmer in England.

“This agreement establishes a modern, forward-looking partnership that will stimulate innovation, ease market access, and foster investment,” said Mittal. “Businesses in both India and the U.K. stand to benefit as this lays the foundation for expanding bilateral cooperation across key growth sectors.”

Tariffs between the U.K. and India will also lessen, as Britain will reduce levies on 99% of Indian exports, while India will decrease tariffs on 90% of British goods.

The trade deal will “add momentum to the ‘Make in India’ led growth and export promotion,” said Modi Thursday. “The future indeed holds the promise of greater prosperity and deeper ties between our nations.”

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