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The ambitious launch of a free trade agreement negotiations between India and the United Kingdom took place with the objective of doubling the bilateral trade.

Outcomes of the Agreement   

• The eventful agreement aims to double the bilateral trade by 2030 and it has been considered as a partnership that is built on shared history and rich culture.
• This free trade agreement has been recognised, so far, as the deepest trade deal.
• The bilateral partners agreed to collaborate on the areas such as the service sectors, innovation and technology.
• There were discussions on transitions from fintech to green-tech and automation to Artificial Intelligence.
• India expects to gain from tariff reduction in labour-intensive sectors such as textiles, leather, jewellery apart from cereals and pharmaceuticals.

Free Trade Agreement:

• A free trade agreement is a pact between two or more countries to reduce trade barriers facilitating imports and exports.
• The goods and services can be brought within the purview of free trade policy.
• It involves trade across international borders with little or no government tariffs, quotas, subsidies or any inhibition in the exchange of goods and services.