NEW DELHI: Indian Foreign Minister Subrahmanyam Jaishankar said on Saturday a trade deal with Britain was “truly a milestone” that will boost bilateral ties as he welcomed his counterpart David Lammy to New Delhi.
India and Britain struck a long-delayed free trade agreement last month after negotiations were relaunched in February.
Britain has sought to bolster trade ties across the world since it left the European Union under Brexit, a need that became more pressing after the United States unleashed a global tariff blitz that risks causing weaker economic growth.
“The recent conclusion of the India-UK FTA… is truly a milestone which will not only propel our two-way trade and investment but will also have a positive effect on other strategic aspects of our bilateral ties,” Jaishankar said after meeting Lammy, who is on a two-day visit.
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“It would also contribute to the strengthening of supply and value chains,” he said.
The accord will slash tariffs on imports of UK goods into India, including whisky, cosmetics and medical devices.
In exchange, Britain will cut tariffs on imports of clothes, footwear and food products, including frozen prawns, from India.
Britain and India are the sixth- and fifth-largest global economies respectively, with a trade relationship worth around 41 billion pounds ($54.8 billion) and investment supporting more than 600,000 jobs across both countries.
They hope the free-trade agreement will increase trade between them by about 25.5 billion pounds, as well as boost the British economy and wages.
Talks were relaunched in February after stalling under Britain’s previous Conservative administrations.
Lammy said before his visit the deal with India was “just the start of our ambitions”.
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