India-UK free trade deal will be good to businesses and consumers in both countries

Source: The post is based on the article “India-UK free trade deal will be good to businesses and consumers in both countries” published in The Indian Express on 13^th December 2022.

Syllabus: GS 2 – International Relations

Relevance: benefits of Free Trade Agreement between India and the UK.

News: India and the UK are the two largest economies of the world. A Free Trade Agreements (FTA) between the two would further benefit both the economies.

How will the free trade agreement benefit both the nations?

Lower Prices: It would help in providing multiple choice to Indian consumers along with providing lower prices of British manufactured products.

Environmental Benefits: PM Modi has asked the Indian Businesses to export products around the world with “zero-effect, zero-defect”. This means exporting high-quality goods with no environmental impact. An FTA would help in achieving this.

Providing Market: It would help Indian firms by providing a market in the UK where they can sell their goods and services.

Expertise: India’s economy is growing and the UK can provide its expertise in the different fields including SMEs to further give a boost to the economic growth of India.

Investments: It would also help to empower the India-UK investment boom and increase investment in each other’s economy.

What are the concerns?

There are concerns of slow global economic growth, impact of pandemic on the supply chain and volatile markets to the current trade agreement.

However, despite these concerns it is expected that FTA would help in boosting ties between the two nations.