India Committed to Build High-Scoring, Solid Partnership With UK: Modi After Inking FTA

New Delhi: India and Britain formally inked the comprehensive economic and trade agreement (CETA), known more popularly as the free trade agreement (FTA), on Thursday in London, with Prime Minister Narendra Modi hailing the pact as “not just an economic partnership but a “plan for shared prosperity”. Mr Modi and British PM Keir Starmer also firmed up the "Vision 2035' strategy to expand ties in areas of defence, technology, clean energy and migration.

Terming it a “historic day” in the India-UK relations”, Mr Modi said he was “happy that after many years of hard work” the pact had been inked that, as per British estimates, is expected to boost bilateral trade by about £25 billion every year (nearly `3-lakh crores).

Using cricketing analogies to define the partnership, the PM said that “there may be a swing and a miss at times, but we always play with a straight bat”. He added that “we are committed to building a high-scoring, solid partnership” with Britain. He declared that “it is our commitment that, from artificial intelligence (AI) to critical minerals, semiconductors to cybersecurity, we shall create the future together”.

“The demand of today's era is development, not expansionism,” Mr Modi said in what is being seen as a jibe at China.

Earlier, Mr Modi was warmly received by PM Keir Starmer at the British Prime Minister’s country residence at Chequers in Buckinghamshire, where the two leaders initially held a one-on-one meeting. This was followed by their joint press statements and then the delegation-level talks.

India and Britain began negotiations for the FTA more than three years ago in January 2022, following which the pact was initially announced by the two Prime Ministers on May 6 this year.

In the presence of Mr Starmer during the press statements, Mr Modi said that the trade deal will ensure that the Indian textiles, footwear, gems and jewellery, seafood and engineering goods will get better market access in the UK and that new opportunities will be created in the UK market for India's agricultural produce and processed food industry.

Pointing out that this agreement will prove to be especially beneficial for India's youth, farmers, fishermen and MSME sector, Mr Modi said that likewise the products made in the UK, such as medical devices and aerospace parts, will be available to the people and industry of India at accessible and affordable rates.

Britain said that “Indian consumers will benefit from improved access to the best British products –- from soft drinks and cosmetics to cars and medical devices -– as average tariffs will drop from 15 per cent to 3 per cent”.

Britain also said the FTA “removes or reduces tariffs on 90 per cent of tariff lines, including key British exports to India. It also said British car manufacturers “can benefit from a quota reducing the tariff from up to 110 per cent to 10 per cent”. British food products expected to benefit from the pact include lamb and salmon.

Terming the trade pact as the “most significant deal of the UK since it left the European Union”, the British Prime Minister said it will “boost wages, cut tariffs, make trade cheaper and raise living standards” besides putting more money in the pockets of workers.

Mr Starmer further said that the pact would lead to an addition of £4.8 billion every year and 2.2 billion pounds in wages. He pointed out that it will also be good for consumers in Britain, as Indian goods such as clothes, shoes and food will be available at lower prices.

Giving the credit to his government for getting the pact done, Mr Starmer said, “Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change. We’re putting more money in the pockets of hard-working Brits and helping families with the cost of living, and we’re determined to go further and faster to grow the economy and raise living standards across the UK.”

The CETA will now need to be ratified by the British Parliament before implementation.

The two Prime Ministers later met with business leaders from both nations following the signing of the historic trade pact. The two leaders oversaw the inking of the CETA by Union commerce minister Piyush Goyal from the Indian side and the British business and trade secretary Jonathan Reynolds.

India and the UK also adopted a “Vision 2035” document that “will become the roadmap for a strong, reliable and ambitious partnership in the areas of technology, defence, climate, education and people-to-people connect”, Mr Modi said, adding that it will “give new momentum and energy to our comprehensive strategic partnership in the next decade”.

The Prime Minister also said a “defence industrial roadmap has been prepared for partnership in defence and security” that was also adopted “to promote collaboration in co-design, co-development and co-production of defence products”.

In his address, Mr Modi said that the trader agreements between two democratic countries and two major economies of the world will also strengthen global stability and prosperity.

Mr Modi also paid condolences to the families of the over 50 British nationals who perished in the horrific Air India plane crash last month at Ahmedabad.

On global issues discussed with his British counterpart, he said, “We have been sharing views on peace and stability in the Indo-Pacific, the ongoing conflict in Ukraine, and the situation in West Asia. We support the restoration of peace and stability as soon as possible. Respect for the sovereignty and territorial integrity of all countries is imperative.”

On ties in the education sector, the PM said that “both the countries are writing a new chapter together in the field of education too and that six British universities are opening campuses in India”.

The Prime Minister lauded “people of Indian origin living in the UK as a living bridge in our relations”.

On combating the menace of terrorism, Mr Modi thanked Mr Starmer and his government “for strongly condemning the terrorist attack in Pahalgam”, adding that “we are unanimous that double standards have no place in the fight against terrorism”.

In a veiled reference to the anti-India activities of pro-Khalistan extremists in Britain, the Prime Minister said, “We also agree that forces with extremist ideology cannot be allowed to misuse democratic freedoms. Those who misuse democratic freedoms to undermine democracy itself must be held to account.”

A MoU between the Central Bureau of Investigation and the National Crime Agency of the UK to combat crime and corruption was also inked.

At a special briefing in London, foreign secretary Vikram Misri said, “Our agencies will continue to work in cooperation and coordination on the issue of extradition of economic offenders”.

The foreign secretary also said Mr Modi had invited Mr Starmer to visit India and that the invitation had been accepted.