FTA, ties in focus as PM Modi set to visit UK and Maldives
New Delhi, July 21 -- Prime Minister Narendra Modi will visit Britain and the Maldives this week for meetings with the leadership of both countries to take forward bilateral relations and to formalise the India-UK free trade agreement (FTA).
Modi will travel to the UK during July 23-24 and then go to the Maldives from July 25 to 26. He will be the guest of honour at the Indian Ocean archipelago's Independence Day, marking a turnaround in bilateral ties that had turned frosty because of the policies of Maldivian President Mohamed Muizzu.
The India-UK trade deal, which was finalised in May, is expected to be formally signed during Modi's visit, people familiar with the matter said.
The FTA is set to boost Indian exports of textiles, leather and engineering goods and cut levies on British whisky, automobiles and medical devices. The two sides have been engaged in the legal scrubbing of the deal since May. The FTA is expected to double bilateral trade by 2030 from the current level of $60 billion. Another attractive feature of the deal is an exemption for employers of Indian workers from paying social security contributions in the UK for three years under the Double Contribution Convention.
Under the deal, India will get tariff elimination on 99% of its tariff lines, covering nearly 100% of trade value.
The UK will get reduced tariffs on 90% of British tariff lines. Labour-intensive sectors such as Indian textiles and apparel will get a competitive advantage against countries such as Bangladesh and Vietnam. India will get similar advantages in leather, footwear, gems and jewellery, pharmaceuticals, agriculture and processed foods....
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