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Great Britain and India agreed on Tuesday a “historic” free trade agreement, which, according to London, would increase the British economy by 4.8 billion pounds in the long term, with major reductions in Indian prices on British whiskey and cars.
Discussions on the agreement, which dragged for three years, accelerated following the taxation of the World President of US President Donald Trump price London and New Delhi last month wishing to seal the closer trade links.
“In a historic stage, India and the United Kingdom successfully concluded an ambitious and mutually beneficial free trade agreement,” said Indian Prime Minister Narendra Moda after a conversation with his British counterpart Sir Keir Starmer.
Modi added that the agreement “would help catalyze trade, investment, growth, job creation and innovation in our two economies” and that Starmer would visit India Soon.
British ministers hope that the India trade agreement could be a prelude to the signing of an agreement with Trump in the coming days, before an agreement with the EU to start improving bilateral trade ties at a summit on May 19.
While Great Britain has obtained lower prices for exports to India, especially on whiskey, gin and cars, New Delhi wanted better terms to help its professional workers take jobs in the IT sector, as well as lower textile prices.
Starmer said the agreement was an answer to “a new era for trade and the economy” and was a sign that his government, which was beaten in the local elections last week, delivered the British public.
“Today, we have concluded a historic agreement with India, one of the fastest economies in the world, which will grow the economy and deliver for the British and business,” he said.
The prices of whiskey and gin will be divided by two from 150% to 75% before falling to 40% by the tenth year of the agreement. Automobile rates will drop from more than 100% to 10%, subject to a quota.
The British government has said that prices for Indian products would help British buyers “cheaper and more choice” in areas such as clothing, shoes and food products such as shrimp.
Based on the trade of 2022, the agreement would imply that India reduces prices worth more than 400 million pounds sterling per year when the agreement concluded in force, reaching approximately 900 million pounds Sterling after 10 years, said the British government.
He added that he expected the agreement to increase bilateral trade by 25.5 billion pounds sterling and the UK GDP by 4.8 billion long-term Sterling pounds.
Additional reports by Amy Borrett
