'A Lot Of Hard Work...' - Vedanta Chairman Anil Agarwal Hails India-UK Free Trade Agreement

The much-anticipated India-UK Free Trade Agreement (FTA) was signed recently in a landmark ceremony attended by Prime Ministers Narendra Modi and Keir Starmer. This agreement is expected to greatly enhance trade, investment, and economic cooperation between the two countries.

Anil Agarwal, Chairman of Vedanta Ltd., congratulated both leaders on this historic milestone. He said, “I congratulate PM Modi and PM Starmer for this historic agreement. This is a great achievement between Britain and India as they walk down the progressive path. A lot of hard work has gone into it.”

According to Agarwal, the FTA will be mutually beneficial for India and the UK. "The FTA will be a win-win for both countries. It will boost economic activity and create many more jobs, and opportunities for entrepreneurship in both countries. This will help both countries to increase the trade by at least $20 billion," he stated.

He further expressed optimism about the growing economic ties between India and the UK. "I have closely seen the economic engagement between India and the UK grow substantially over the last two decades. We make a great partnership, be it trade, investment or people-to-people links," Agarwal added.

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India-UK Are Key Trading Partners

In the financial year 2023–24, trade between India and the UK reached $55 billion. With this agreement, both countries hope to increase that number to $120 billion by 2030. As part of the deal, India will reduce tariffs on 90% of UK products, bringing the average duty down from 15% to just 3%.

High duties on Scotch whisky will fall from 150% to 75% immediately and then gradually to 40% over ten years. British car imports, which currently face over 100% duty, will also see reduced tariffs, though through a limited quota system. In return, Indian electric and hybrid vehicle makers will gain access to the UK market, also under quotas.

India and the UK already share strong investment ties. The UK is India’s sixth-largest foreign investor, having put in around $36 billion so far. At the same time, about 1,000 Indian companies operate in the UK, employing over 100,000 people and investing nearly $20 billion into the British economy.

The agreement also supports the trade of services in areas such as IT, finance, education, and architecture. It will make it easier for Indian professionals to work in the UK. A key part of the deal includes a three-year exemption from UK social security payments for temporary Indian workers and their employers. This will save money for Indian workers posted in the UK.