
Cabinet Nods India-UK FTA, to be Signed During Modi’s Visit to UK
In a significant development, the Indian Cabinet has approved the Free Trade Agreement (FTA) between India and the United Kingdom. The Comprehensive Economic and Trade Agreement (CETA) will reportedly be signed during Prime Minister Narendra Modi’s visit to London on July 23-24. The Commerce and Industry Minister, Piyush Goyal, will accompany PM Modi on the visit.
The approval of the FTA comes after months of intense negotiations between the two governments. The agreement aims to boost bilateral trade and economic ties between India and the UK, which have been growing steadily over the years. The pact is expected to cover a wide range of areas, including trade in goods and services, investment, intellectual property, and labor standards.
The agreement is expected to benefit Indian industries such as textiles, leather, and agriculture, which have been seeking greater market access in the UK. The UK, on the other hand, is expected to benefit from increased exports of services and goods to India. The pact is also expected to promote investment flows between the two countries and create new job opportunities.
The approval of the FTA has been welcomed by industry bodies and trade associations, which have been advocating for a comprehensive trade agreement between the two countries. The Confederation of Indian Industry (CII) has hailed the development as a major step forward in strengthening India-UK economic ties.
“This agreement will provide a significant boost to India’s exports to the UK, particularly in areas like textiles, leather, and agriculture,” said Chandrajit Banerjee, Director-General of CII. “We believe that this agreement will also create new opportunities for Indian companies to invest in the UK and vice versa.”
The UK has been one of India’s largest trading partners, with bilateral trade worth over $24 billion in 2020-21. The country is also one of the largest investors in India, with investments worth over $20 billion.
The approval of the FTA comes at a time when India is looking to diversify its trade relationships and reduce its dependence on traditional partners like the US and Europe. The country has been actively engaging with countries like the UK, Australia, and Japan to strengthen its economic ties and promote bilateral trade.
The UK, on the other hand, is seeking to strengthen its trade relationships with countries like India, which are expected to drive global economic growth in the coming years. The UK has been actively pushing for a comprehensive trade agreement with India, which is expected to cover areas like services, investment, and labor standards.
The approval of the FTA is also seen as a major diplomatic success for the Modi government, which has been seeking to strengthen its ties with the UK and other Western countries. The visit of PM Modi to the UK is expected to be a major event, with a range of agreements and MoUs expected to be signed during the visit.
The agreement is also expected to have significant implications for Indian firms operating in the UK, which have been seeking greater market access and regulatory clarity. The UK, on the other hand, is expected to benefit from increased exports of services and goods to India, which is expected to drive economic growth in the country.
In conclusion, the approval of the FTA between India and the UK is a significant development that is expected to boost bilateral trade and economic ties between the two countries. The pact is expected to benefit Indian industries such as textiles, leather, and agriculture, and promote investment flows between the two countries. The visit of PM Modi to the UK is expected to be a major event, with a range of agreements and MoUs expected to be signed during the visit.