India’s landmark trade pact with Britain – three years in the making – could pave the way for similar agreements with the United States and European Union, analysts said, as New Delhi looks to cement its role in reconfigured global supply chains.
Announced on Tuesday, the free-trade agreement aims to reduce tariffs and ease market access between the world’s fifth- and sixth-largest economies, with both sides touting its potential to create jobs, boost investment and spur innovation.
Indian Prime Minister Narendra Modi described the deal as “ambitious and mutually beneficial”, while British Prime Minister Keir Starmer hailed it as a significant step in a “new era for trade” between the two nations.
Though final legal touches are still pending, UK officials say the deal marks Britain’s most significant trade achievement since it left the EU in 2020.
The agreement is expected to boost investment, generate jobs and support technology transfer between the two countries, said Pratik Dattani, founder of London-based think tank Bridge India.
He added that the intensifying US-China trade war likely gave fresh momentum to the talks, as more countries seek to diversify their markets and reduce reliance on the world’s two largest economies.
