Prime Minister Narendra Modi has left for the UK tour. This visit of PM is considered historic for the Indian economy, as a free trade deal (FTA) is going to be done between India-UK. Tomorrow, during the meeting of Prime Minister Modi and Prime Minister of Britain, Keir Stormer, the free trade agreement is expected to be officially signed between the two countries.
India-Britan Free Trade Agreement is a major trading agreement. It started in January 2022 during the tenure of the then British PM Boris Johnson. The target was to first complete it by 2024. Commerce Minister Piyush Goyal will also be accompanied by Prime Minister Modi’s visit. Through the Free Trade Agreement, India-Britain’s attempt is to take bilateral trade to US $ 120 billion by 2030.
This agreement will not only be better for the economies of India, but will also give great relief to the general public. Many things can be cheaper by this agreement. Free Trade Agreement (FTA) means to reduce or eliminate tariffs or custom duty on import-exported products between the two countries, so that trade between the two countries is easier and the goods of the two countries get cheap.
What does India-UK FTA mean?
Under India and UK Free Trade Agreement, India will get the right to tax free export in UK on its 99 percent export item. Currently, these items are charged from 4% to 16%. India there Britain The tariff will be removed on 90 percent of the products coming from. This will also give great benefit to Indian companies, because more products will be available for them at low cost. At the same time some things will be found at cheap price.
What will happen cheap and expensive?
Many of the electronics, clothes and jewelery coming from UK from the free trade agreement can be cheap. A new market can open for clothes, jewelery, technology and marine products going from India to UK. At the same time, agriculture products may remain stable or may be expensive, because this sector has not been tampered with.
- Electronics coming from the UK can be cheaper, as it will come from UK in low tariffs.
- Fabric-shoes, leather and fashion items will be imparked from UK in zero tax, due to which it can be cheap.
- Medicines are also important and exports from UK. In such a situation, both countries can reduce tariffs on this, which can make it expensive and cheap.
- The prices of agriculture products may remain stable, as India has not compromised with its agricultural sector.
- The prices of auto products like cars and bikes can be expensive, as competition and tariff will change.
- India will also open the market for UK regarding steel and metal. Due to which the UK’s high quality products will compete. In such a situation, things can be expensive.
What would be meant for the common man?
Competition will also increase in India due to metal and jewelery products from UK and the effect of custom rules will also be due to which these things will become expensive. However, the advantage of this agreement for the common man will be that some things of daily use such as electronic gadgets, clothes and shoes can be found in low prices. Apart from this, employment opportunities are also going to be created. There will also be economic boost.
—- End —-
Source link
[ad_3]
