India, UK have finalized a free trade deal: PM Modi
What's the story
Prime Minister Narendra Modi has announced the successful conclusion of a Free Trade Agreement (FTA) with the United Kingdom. The deal also includes a Double Contribution Convention. Taking to X, Modi said he was delighted to share the news with UK Prime Minister Keir Starmer and that these agreements will further deepen their comprehensive strategic partnership. He added they will catalyze trade, investment, growth, job creation, and innovation in both economies.
Trade expansion
Bilateral trade on the rise
The FTA and Double Contribution Convention are likely to give a major boost to trade, investments, as well as job creation in both countries. In FY24, India-UK bilateral trade stood at $21.34 billion (up from $20.36 billion in FY23). The two nations hope to double their bilateral goods trade over the next decade from the current level.
Agreement
Negotiations and social security pact
The FTA was finalized after 14 rounds of negotiations between India and the UK. The discussions also included a Bilateral Investment Treaty and a social security pact called the Double Contribution Convention Agreement. The latter aims to prevent Indian professionals working temporarily in Britain from contributing twice to social security funds, thus ensuring they get benefits for their contributions.