Latest news with #EFTA
Economic Times
19 hours ago
- Business
- Economic Times
India, UK start a new chapter with FTA
India and the UK signed a Comprehensive Economic and Trade Agreement (CETA) with the aim of doubling imports and exports to more than $100 billion by 2030 from $56 billion now, marking the first of several key accords the Narendra Modi government expects to reach amid global upheaval sparked by US President Donald Trump's tariffs. Next up is likely a bilateral trade agreement with the US; both sides are said to be close to a CETA with the former colonial power is India's 16th such trade pact and will remove taxes on labour-intensive products such as leather, footwear and clothing in the British market, unlocking nearly $23 billion in opportunities. Similarly, whisky and cars from Britain will be cheaper in agreement between the world's fourth- and sixth-largest economies was signed in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer after three years of negotiations amid the Trump-led tariff uncertainty. The accord will require the British parliament's approval before it can take effect, a process that may take about a year. The accord is critical for the island nation as it provides greater access to the fastest-growing economy in the world, five years after Brexit. As part of the agreement, India will cut import duty on Scotch whisky and gin from the UK to 75% initially and to 40% by the 10th year from 150% now. Tariffs on automotive imports will fall to 10% from over 100% under quotas on both sides. Indian manufacturers will gain access to the UK market for electric and hybrid vehicles, also under a quota system. 'A new chapter begins today in the India-UK economic partnership!' Modi said in a post on X. 'The signing of the Comprehensive Economic and Trade Agreement (CETA) reflects our shared commitment to enhancing trade, driving inclusive growth and creating opportunities for farmers, women, youth, MSMEs, and professionals.'India's exports to the UK rose 12.6% to $14.5 billion, while imports grew 2.3% to $8.6 billion in FY25. India's tariffs on British products will drop to 3% from 15%.Modi added: 'India-UK CETA will add momentum to the 'Make in India'-led growth and export promotion. This agreement will also provide Indian consumers with high-quality goods at competitive prices. The future indeed holds the promise of greater prosperity and deeper ties between our nations!'Since 2014, the country has signed five trade pacts — with Mauritius, the UAE, Australia, EFTA and the said the deal would bring 'huge benefits' for both countries, making trade cheaper, quicker and easier. 'We've entered a new global era, and that is one that requires us to step up, not to stand aside... by building deeper partnerships and alliances,' he said. The agreement was signed by commerce and industry minister Piyush Goyal and UK's secretary of state for business and trade Jonathan also unveiled a renewed Comprehensive Strategic Partnership — the UK-India Vision 2035. 'The trade deal, which is forecast to boost bilateral trade by £25.5 billion yearly, is both India's most comprehensive deal ever, and the UK's most economically significant bilateral trade deal since leaving the EU,' the UK said in a statement, adding that it significantly improves market access for businesses in both countries, leading to cheaper products and services for consumers. The two sides announced the conclusion of the FTA negotiations on May 6. India said it has protected the interests of domestic farmers by excluding dairy products, edible oils, oats and apples in the trade pact while securing zero duties on 95% of agriculture and processed food items. 'This FTA will serve as a catalyst for inclusive growth, benefiting farmers, artisans, workers, MSMEs, startups and innovators while safeguarding India's core interests and accelerating our journey towards becoming a global economic powerhouse,' Goyal staples such as turmeric, pepper, cardamom, processed goods like mango pulp, pickles and pulses and marine products such as shrimp and tuna will enjoy duty-free access to the UK than 95% of agricultural and processed food tariff lines will attract zero duties on fruits, vegetables, cereals, pickles, spice mixes, fruit pulps and ready-to-eat meals and processed foods.'Duty-free access is expected to increase agri exports by over 20% in the next three years,' said an CETA provides for zero-duty access for shrimp, tuna, fishmeal, feeds, coffee, spices, beverages and processed food.'Nearly £6 billion in new investment and export wins announced today are a sign of things to come, as future collaboration expands into advanced technologies, critical minerals, green finance, and beyond,' Reynolds said.'For financial and professional business services, locked-in access will offer certainty to expand in India's growing market and measures such as binding India's foreign investment cap for the insurance sector, ensuring UK financial services companies are treated on an equal footing with domestic suppliers,' the UK said in a British companies have announced new business in India. Airbus & Rolls-Royce will soon begin delivering Airbus aircraft — with over half powered by Rolls-Royce engines — to major Indian airlines as part of around £5 million worth of contracts recently agreed part of the reinvigorated partnership, the UK and India have also decided to strengthen cooperation in tackling corruption, serious fraud, organised crime, and irregular migration through enhanced intelligence sharing and operational deal will also facilitate easier access for temporary business visitors, though visas are not covered. Britain and India also agreed to ensure workers no longer have to make social security contributions in both countries during temporary postings in the other has also secured an agreement on the Double Contribution Convention. This will exempt Indian professionals and their employers from social security payments in the UK for up to three years, improving the cost competitiveness of Indian CETA provides greater market access for IT and IT-enabled services, financial and legal services, professional and educational services, and digital trade.'Indian professionals, including those deployed by companies to work in UK across all services sectors, professionals deployed on contracts such as architects, engineers, chefs, yoga instructors, and musicians, will benefit from simplified visa procedures and liberalised entry categories, making it easier for talent to work in the UK,' the commerce and industry ministry the trade deal, British firms will be able to access India's procurement market for projects in sectors such as clean energy, and it also covers services sectors such as insurance.'They have got limited access in our procurement but we have got unfettered access in theirs,' said the official cited for a separate bilateral investment treaty are continuing.'Women and youth entrepreneurs, farmers, fishermen, startups, and MSMEs will gain new access to global value chains, supported by provisions that encourage innovation, promote sustainable practices, and reduce non-tariff barriers,' the ministry added. Bhagalpur silk, Pashmina shawls, Kolhapuri chappal, and Thanjavur dolls will now potentially get shelf space in malls and shops across Britain as the free trade agreement will provide duty concessions to a host of traditional products manufactured in India. Makhana, shahi litchi, Araku coffee, and Kashmiri saffron will also gain greater access to the UK market.
Time of India
a day ago
- Business
- Time of India
Explained: What is Free Trade Agreement? And why it matters to India's economy
Free Trade Agreements (FTAs) are a crucial part of international trade policy, offering countries a framework to reduce trade barriers and enhance market access for goods and services. Tired of too many ads? go ad free now For India, FTAs are increasingly becoming an essential tool to boost exports, attract investment, and deepen strategic economic ties. What is a Free Trade Agreement ? A Free Trade Agreement is a pact between two or more countries to reduce or eliminate customs duties, quotas, and non-tariff barriers on goods and services traded between them. FTAs usually also include provisions for investment protection, intellectual property rights, labour standards, dispute resolution, and regulatory cooperation. These agreements help businesses by: Lowering the cost of exports and imports Providing a level playing field in global markets Allowing access to raw materials and intermediate goods at lower tariffs Reducing compliance costs through harmonised standards Globally, over 350 FTAs are active, covering over half of all international trade. India's FTA strategy India has signed 16 FTAs, including pacts with Japan, South Korea, ASEAN, Sri Lanka, and Mauritius. Since 2014, five major agreements have been concluded with the UAE, Australia, Mauritius, the European Free Trade Association (EFTA), and now the United Kingdom. India is currently negotiating FTAs with the European Union, the United States, Israel, Oman, and Peru. Talks with Canada have been paused due to political tensions. These agreements are part of India's broader goal to integrate more deeply with global value chains and to shift from a protectionist to a more open trade posture, particularly in areas where Indian products have export competitiveness. How FTAs help India FTAs help Indian exporters by giving them duty-free or preferential access to overseas markets. Labour-intensive sectors like textiles, agriculture, leather, and engineering goods stand to benefit the most. Tired of too many ads? go ad free now They also encourage foreign companies to set up manufacturing in India to access FTA partner markets. Additionally, Indian consumers benefit from access to a wider range of products at lower prices, while Indian industries can import high-quality inputs more affordably. However, India also uses FTAs to safeguard sensitive sectors like dairy, oilseeds, and certain manufactured goods, where sudden exposure to global competition could hurt domestic producers. India–UK Free Trade Agreement: A major milestone On Thursday, India signed a landmark Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom, aiming to double bilateral trade (currently around $56 billion) by 2030. It is India's first FTA with a developed European economy. Key gains for India: Agriculture and processed food: Duty-free access for over 95% of products like fruits, spices, pulses, and seafood. Textiles and apparel: Elimination of tariffs, boosting competitiveness against rivals like Bangladesh. Pharma and chemicals: Zero tariffs on generics, medical devices, and key chemicals. Mobility for services: Easier access for yoga instructors, IT professionals, chefs, and artists. Autos and alcohol: Tariff cuts on Scotch whisky and luxury vehicles, with phased reductions over 10 years. India has ensured that no concessions were given on sensitive items like dairy, apples, and edible oils. The deal also includes a first-of-its-kind chapter on innovation, focusing on joint technology development. In short, FTAs are a strategic lever for India to grow its exports, boost investment, and secure long-term economic resilience. The UK agreement is the latest step in this direction — and among the most comprehensive yet. (With inputs from agencies)
&w=3840&q=100)
Business Standard
a day ago
- Business
- Business Standard
India, UK sign FTA: What it means and how it will help both countries
India and the United Kingdom have signed a historic Free Trade Agreement (FTA) on Thursday during Prime Minister Narendra Modi 's visit to the UK. This trade deal is expected to boost annual bilateral trade by $34 billion. UK Prime Minister Keir Starmer also announced fresh investment and export deals worth £6 billion between India and the UK. These agreements are expected to create over 2,200 new jobs in the UK. What is an FTA? A Free Trade Agreement is a deal between two or more countries where they agree to reduce or completely remove customs duties (or taxes) on most goods traded between them. Besides this, FTAs also aim to reduce other trade barriers and make it easier to do business, export services, and encourage investments between the partner countries. The topics covered under these deals can range from 10 to as many as 30, depending on the agreement. Globally, more than 350 FTAs are currently active, and most countries have signed one or more such agreements. Why are FTAs important? Free Trade Agreements offer several benefits to countries, industries, and consumers: -Bigger markets for exports: With zero or reduced customs duties, Indian exporters can send goods at cheaper prices to FTA partner countries. -Equal opportunity: Indian companies get a level-playing field against competitors from other countries that may already have FTAs with these partners. -Preferential treatment: Products from FTA countries get better access and treatment in each other's markets compared to non-member nations. -Boost to investment: These deals encourage foreign companies to invest in India, helping boost local manufacturing. -Access to key materials: FTAs allow easy imports of raw materials and machinery at lower costs, which supports value-added manufacturing. -Consumer benefits: In the long term, FTAs help lower prices and improve the quality of goods for consumers. India's FTA journey so far Since 2014, India has signed five FTAs, including with Mauritius, the UAE, Australia, EFTA (European Free Trade Association), and now the UK. Other countries and blocs India has FTAs with include Sri Lanka, Bhutan, Thailand, Singapore, Malaysia, South Korea, Japan, Asean (10-nation bloc), Australia, the UAE, Mauritius, and EFTA (Iceland, Liechtenstein, Norway, Switzerland). India's ongoing trade talks India is also negotiating trade deals with several countries and regions, including the United States, the European Union, Oman, Peru, and Israel. Negotiations with Canada, however, are currently on hold due to political concerns. These agreements aim to increase market access, reduce trade barriers, strengthen strategic ties, and support Indian industries with balanced terms. India-UK FTA: What's in it? The India-UK Comprehensive Economic and Trade Agreement (CETA) will eliminate or reduce taxes on key products and is expected to double bilateral trade from about $56 billion to much more by 2030. Key highlights of the India-UK FTA include: -Labour-intensive goods: India will be able to export items like leather, footwear, and clothing to the UK without high duties. -Cheaper UK imports: British whisky and cars will become cheaper for Indian consumers. -Whisky duty cut: India will reduce the import tax on Scotch whisky and gin from 150 per cent to 75 per cent immediately, and eventually down to 40 per cent in ten years. -Car import duties: Tariffs on UK-made cars will come down from over 100 per cent to 10 per cent under specific quotas for both countries.
Deccan Herald
a day ago
- Business
- Deccan Herald
India's free trade agreements
India on Thursday signed a free trade agreement, officially dubbed as the Comprehensive Economic and Trade Agreement (CETA), with the UK – its 16th trade pact so far – as the country aims to boost bilateral trade and other regions and countries with which India has signed such agreements include the four-nation European bloc EFTA, Japan, Korea and 2014, the country has signed five trade pacts with Mauritius, the UAE, Australia, EFTA and the UK..A free trade agreement is an arrangement between two or more countries where they agree either to end or reduce customs duties on the maximum number of goods traded between them, besides cutting down non-trade barriers on a significant value of imports from partner countries and easing norms to promote services exports and bilateral subjects covered under these pacts range from 10 to 30. Across the globe, over 350 FTAs are currently in force and most of the nations have signed one or more such entry into partner country markets helps in the diversification and expansion of export field vis-a-vis competitors who may have already entered FTAs with partner enable preferential treatment in the partner country market over non-FTA member country pacts attract foreign investment to stimulate domestic manufacturing. They allow access to raw materials, intermediate products and capital goods for value-added achieve long-term efficiency and consumer welfare operating in India-UK space enthused by FTA has inked trade deals with Sri Lanka, Bhutan, Thailand, Singapore, Malaysia, Korea, Japan, Australia, the UAE, Mauritius, the 10-nation bloc ASEAN (Association of Southeast Asian Nations), and four European nations' bloc EFTA (Iceland, Liechtenstein, Norway, and Switzerland).In addition, India is negotiating trade agreements at present with a number of its trading partners. The negotiations are underway with the US, Oman, the European Union (EU), Peru, and with Canada for a similar pact were put on hold due to certain political issues. Advantages of these pacts:These trade agreements have contributed to enhance market access, reduce tariff and non-tariff barriers, strengthen strategic partnerships, and support domestic industry through balanced trade these FTAs reflect a strategic shift towards high-quality, comprehensive trade agreements designed to support India's domestic manufacturing, services exports, and integration into resilient global value and the UK clinched a 'landmark' trade deal that will remove taxes on the export of labour-intensive products such as leather, footwear and clothing, while making imports of whisky and cars from Britain cheaper, in a bid to double trade between the two economies from the current about USD 56 billion by will cut import duty on Scotch whisky and gin from the UK to 75 per cent initially and to 40 per cent by the 10th year. At present, it is 150 per on automotive imports will go from over 100 per cent to 10 per cent under quotas on both sides.
News18
a day ago
- Business
- News18
Indias free trade agreements, an explainer
Agency: PTI Last Updated: New Delhi, July 24 (PTI) India on Thursday signed a free trade agreement, officially dubbed as the Comprehensive Economic and Trade Agreement (CETA), with the UK – its 16th trade pact so far – as the country aims to boost bilateral trade and investments. The other regions and countries with which India has signed such agreements include the four-nation European bloc EFTA, Japan, Korea and Australia. Since 2014, the country has signed five trade pacts with Mauritius, the UAE, Australia, EFTA and the UK. *What is an FTA? A free trade agreement is an arrangement between two or more countries where they agree either to end or reduce customs duties on the maximum number of goods traded between them, besides cutting down non-trade barriers on a significant value of imports from partner countries and easing norms to promote services exports and bilateral investments. The subjects covered under these pacts range from 10 to 30. Across the globe, over 350 FTAs are currently in force and most of the nations have signed one or more such agreements. *What are the benefits of FTAs? Zero-duty entry into partner country markets helps in the diversification and expansion of export markets. Level-playing field vis-a-vis competitors who may have already entered FTAs with partner countries. Such pacts attract foreign investment to stimulate domestic manufacturing. They allow access to raw materials, intermediate products and capital goods for value-added manufacturing. Help achieve long-term efficiency and consumer welfare goals. *FTAs signed by India so far: India has inked trade deals with Sri Lanka, Bhutan, Thailand, Singapore, Malaysia, Korea, Japan, Australia, the UAE, Mauritius, the 10-nation bloc ASEAN (Association of Southeast Asian Nations), and four European nations' bloc EFTA (Iceland, Liechtenstein, Norway, and Switzerland). In addition, India is negotiating trade agreements at present with a number of its trading partners. The negotiations are underway with the US, Oman, the European Union (EU), Peru, and Israel. Talks with Canada for a similar pact were put on hold due to certain political issues. Advantages of these pacts: These trade agreements have contributed to enhance market access, reduce tariff and non-tariff barriers, strengthen strategic partnerships, and support domestic industry through balanced trade facilitation. Collectively, these FTAs reflect a strategic shift towards high-quality, comprehensive trade agreements designed to support India's domestic manufacturing, services exports, and integration into resilient global value chains. * India-UK CETA: India and the UK clinched a 'landmark' trade deal that will remove taxes on the export of labour-intensive products such as leather, footwear and clothing, while making imports of whisky and cars from Britain cheaper, in a bid to double trade between the two economies from the current about USD 56 billion by 2030. India will cut import duty on Scotch whisky and gin from the UK to 75 per cent initially and to 40 per cent by the 10th year. At present, it is 150 per cent. Tariffs on automotive imports will go from over 100 per cent to 10 per cent under quotas on both sides. PTI RR MR view comments First Published: July 24, 2025, 16:00 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
