Biggest, most economically significant trade deal UK has made since leaving EU: Starmer on FTA with India

London, July 24 (IANS): Stressing that the Free Trade Agreement (FTA) between India and the UK will benefit both the nations, British Prime Minister Keir Starmer on Thursday called the deal the "biggest and most economically significant trade deal" that the country has undertaken since after leaving the European Union (EU). He stated that India-UK FTA will boost wages, raise living standards and put more money in the pockets of the working class.

While making a press statement alongside Prime Minister Narendra Modi in London on Thursday, Starmer said that the FTA deal is good for British workers in cutting edge manufacturing, whiskey distillers across Scotland and the service sector in London, Manchester and in Leeds as it will bring the prices down on Indian goods in the UK.

He said, "It is a deal which will bring benefit to both of our countries, boosting wages, raising living standards and putting more money in the pockets of working...It is good for jobs. It is good for business, cutting tariffs, making trade cheaper, quicker and easier. It is good for British workers in cutting edge manufacturing, whiskey distillers across Scotland and the service sector in London, Manchester and in Leeds. It is good for consumers because it will bring down prices on Indian goods in the United Kingdom, like the clothes and shoes and food and it will deliver benefits for the long term."

"It will add about 4.8 billion pounds to the UK economy every year and 2.2 billion pounds to wages and hundreds of millions of pounds to the regions and nations up and down the United Kingdom. We both know this is the biggest and most economically significant trade deal that the UK has made since leaving the EU and I think I can say it is one of the most comprehensive deals that India has ever done. So, thank you Prime Minister for your leadership and for your pragmatism and I would like to thank everybody who has worked so hard to get this deal over the line," he added.

PM Modi and his British counterpart on Thursday signed the much-awaited Free Trade Agreement (FTA), which will boost annual bilateral trade by about USD 34 billion. As part of the landmark FTA, India will cut tariffs on 90 per cent of the UK products, while the UK will reduce duties on 99 per cent of Indian exports, significantly cutting tariff lines and regulatory processes across sectors.

Keir Starmer said, "As I have said before and as we were just discussing...we have entered a new global era and that is one requires us to step up, not stand aside, to deliver for the British people by building deeper partnerships and alliances and today is very much confirmation of that approach."

He noted that the FTA with India sends a powerful message that, "UK is opening for business and that is already generating huge confidence."

"The UK has been negotiating a deal like this for many years but it is this government that got it done and with it we are sending a very powerful message that UK is opening for business and that is already generating huge confidence. Today, we are announcing nearly six billion pounds in investments and export...between India and the United Kingdom, creating 2200 jobs for the British workers."

Starmer also announced that the two nations are also launching India-UK Vision 2035 Strategy, vowing to work more closely in sectors such as defence, migration, climate change, education and health.

"As we have discussed this morning this is not the extent of the limits of our collaboration with India. We have unique bonds of history, of family and of culture and we want to strengthen our relationship further so that it is even more ambitious, modern and focused on the long-term. The step-up in the relationship we discussed in the autumn of last year and that's why alongside this trade deal, I am delighted that we are building on our partnership by launching India-UK Vision 2035 Strategy, pledging to work more closely on areas such as defence, migration, climate change, education and health," he said.

"We will also build on the fantastic work we already do in technology and innovation, celebrating the one year anniversary of the landmark Technology Security Initiative, making the most of the opportunities it represents for both of our countries," he added.

Earlier, PM Modi called on Starmer at the Chequers Estate - the countryside retreat of the Prime Minister of the United Kingdom - as he began official engagements on his fourth visit to the country. PM Modi is on a two-day official visit to the UK at the invitation of his British counterpart.

Indian diaspora in UK celebrates PM Modi's visit, hails historic FTA

The Indian diaspora in the United Kingdom expressed happiness on Thursday after meeting Prime Minister Narendra Modi during his State Visit to London, hailing the signing of the landmark Free Trade Agreement (FTA) between India and the UK as a step that will deepen bilateral ties and boost trade.

Prime Minister Modi, who arrived in London on Wednesday evening, was given a grand reception by members of the Indian community.

Amid chants of "Modi, Modi", "Bharat Mata Ki Jai" and "Vande Mataram", members of the diaspora danced in traditional attire and held posters welcoming the Indian leader outside his hotel.

"This FTA is a very nice step. We feel proud to call ourselves Indians as the Prime Minister has transformed the nation entirely," said a diaspora member who was present to welcome him.

"With PM Modi's visit and the signing of the FTA, relations between the two countries will only progress. We are very happy about the potential business this deal will generate," another community member told IANS.

"Meeting PM Modi for the first time was really nice. We had been waiting for the FTA for a long time now, as it will strengthen the ties between the two nations," another diaspora member added.

Many said meeting the Prime Minister in person was an emotional and inspiring moment.

"He shook our hands and thanked us for coming. We are proud of the work he's done -- from digitisation to Operation Sindoor, the credit goes to him," said another attendee.

"I come from PM Modi's constituency, Varanasi. Seeing how he's governing India fills me with pride. Operation Sindoor was commendable, and I hope India continues to prosper under his leadership," said a retired Indian Army captain now residing in the UK.

In a historic boost to bilateral economic relations, India and the UK on Thursday signed the long-anticipated FTA, projected to enhance annual trade between the two countries by nearly $34 billion.

Under the agreement, India will cut tariffs on 90 per cent of British goods, while the UK will reduce duties on 99 per cent of Indian exports, easing trade barriers across sectors.

Commenting on the deal, Dhruva Kumar, the Alba Party's MP candidate from Glasgow South, told IANS, “The UK-India Free Trade Agreement, signed by Prime Minister Modi and UK PM Keir Starmer, is a game-changer. It's expected to double trade to $120 billion by 2031, boost the UK economy by $5 billion annually, and create thousands of jobs in both countries.”