India UK FTA paves way for similar agreements with countries like USA, EU: Bank of Baroda

The precocious concluded Free Trade Agreement (FTA) betwixt India and the United Kingdom is expected to payment some nations economically and could besides pave the mode for akin agreements with different countries specified arsenic the United States and the European Union, says a study by Bank of Baroda.

The study noted that portion the UK whitethorn not beryllium among India's apical trading partners astatine present, the FTA marks a important measurement forward. It sets the signifier for deeper commercialized relations with large planetary economies and is simply a beardown awesome of India's committedness to boosting planetary trade.

It said, "While UK per se is not a precise important trading spouse for India, this paves the mode for akin agreements with different countries similar USA and EU and hence, augurs good for India."

India and the UK person announced the palmy decision of this mutually beneficial FTA, calling it a modern, comprehensive, and forward-looking agreement.

The study besides stated that the woody is aligned with India's semipermanent imaginativeness of becoming a developed federation by 2047 nether the 'Viksit Bharat' agenda. It besides complements the maturation aspirations of some countries.

One of the cardinal highlights of the statement is the broad marketplace entree it provides crossed assorted sectors. India volition summation from the elimination of tariffs connected astir 99 per cent of the tariff lines, which covers astir each of the commercialized value.

This is expected to unfastened up immense opportunities for Indian exports and importantly boost bilateral trade.

From the UK's side, the authorities estimates that the woody volition summation the country's GDP by £4.8 cardinal and rise wages by £2.2 cardinal annually successful the agelong run.

For India, the woody involves removing oregon reducing tariffs connected 90 per cent of tariff lines, covering 92 per cent of goods imported from the UK based connected 2022 data. This amounts to tariff cuts worthy implicit £400 million, which could treble to astir £900 cardinal successful 10 years.

One of the important sectors covered nether the woody is automobile. UK car manufacturers volition payment from reduced tariffs, which volition driblet from implicit per cent to 10 per cent nether a quota system.

The study said initially, this volition use to interior combustion motor (ICE) vehicles and aboriginal widen to electrical vehicles (EVs) and hybrids, aligning with the UK's evolving automotive industry.

Similarly, Indian exporters volition besides get staged entree to the UK marketplace for EVs and hybrids nether a quota system, supporting the UK's modulation to electrical mobility.

Overall, the India-UK FTA is expected to summation commercialized flows, trim trading costs, and fortify economical ties betwixt the 2 countries portion opening up possibilities for aboriginal deals with different planetary partners.