Prime Minister Narendra Modi's visit to Europe, Britain, and Maldives is a clear indicator of India's growing global influence and strong economic strategy. The first phase of this visit, taking place from July 23 to 26, will be held in London, where the historic India-Britain Free Trade Agreement (FTA) will finally be signed. The negotiations that have been ongoing for the past three years are coming to fruition, and this agreement will provide both countries with a more open and easy environment for mutual trade.
This agreement will not only be an economic transaction between two countries but will mark the beginning of a new economic partnership and strong strategic cooperation. The tariffs on more than 99 percent of exports from India to Britain will be significantly reduced, while on the other hand, import duties in India on British goods such as whisky and cars will be cut. This will accelerate the flow of trade in both directions and open new markets for local industries.
After the UK tour, Prime Minister Modi will depart for the Maldives on July 25. He will be present as the chief guest at the Maldives' 60th National Day celebration. Notably, since this is Modi's first visit during President Mohamed Muizzu's tenure, it is expected to foster new trust and dialogue in bilateral relations.
Meanwhile, another major news from Europe for India is the implementation of the free trade agreement with the 'European Free Trade Association' (EFTA), a group of four countries, which will start from October 1. EFTA member countries Iceland, Liechtenstein, Norway, and Switzerland have committed to investing 100 billion dollars in India over the next 15 years. This agreement is claimed to create 1 million direct jobs, according to Union Commerce Minister Piyush Goyal.
This economic cooperation will lead to an influx of advanced technology, high-quality European production, and extensive investment in India. Particularly, India's trade with Switzerland will become stronger. Additionally, since more than 80% of the imports are related to gold, there is a possibility of boosting the gold processing industry in India.
On the other hand, the fifth round of negotiations for the India-US trade agreement recently took place in Washington. This round occurred from April 14 to 17, with both countries focusing on each other's strategic expectations. However, the India-US trade agreement has not yet reached its final stage, which is evident compared to the progress with Europe and Britain. Overall, new links are being created in global trade in line with India's principle of 'Vasudhaiva Kutumbakam'. Agreements with Britain and EFTA member countries are not only economically beneficial but also strategically crucial for the country's development. The Prime Minister's visit is proving to be a strong step in that direction.