Amid PM Modi visit to UK, Airbus, Rolls-Royce signs MASSIVE deal worth Rs 4500000000000 with India to supply...

The European aerospace giant Airbus and British engineering powerhouse Rolls-Royce have secured a €5 billion (Rs 45,000 crore) deal with India to supply aircraft and engines to Indian airlines, under comprehensive Free Trade Agreement (FTA) between India and the United Kingdom. PM Modi, on his two-day visit to United Kingdom, inked the FTA along with his British counterpart, PM Sir Keir Starmer in London.

About the €5 billion deal 

India's aviation sector is about to get a big boost after this deal, expanding connectivity to tier 2 and 3 cities. It will benefit the UK with job creations for thousands of high-skilled individuals . Airbus, headquartered in France, has strong industrial footprints in the UK, including key production facilities in Filton and Broughton. Rolls-Royce is also based in Derby, which is set to deliver Trent XWB engines to power more than half of the Airbus aircrafts for India. 

Moroever, the International Aerospace Manufacturing Private Limited (IAMPL),a joint venture between Rolls-Royce and Hindustan Aeronautics Limited (HAL), is expanding its manufacturing facility in Hosur, Tamil Nadu, with a fresh infusion of €30 million.

UK firms to expand operations in India

Airbus and Rolls-Royce are among other 26 British companies set to benefit from the new trade agreement, expanding their operations in Indian market.

1. Carbon clean, originally founded in India in 2009 and now based in London, will invest €7.6 million to open a new office in Mumbai.
2. Johnson Matthey, chemical firm, has secured contracts worth over €20 million and will invest €4 million into its India operations. The company’s expansion is expected to support up to 20,000 jobs.
3. Occuity, a UK based med-tech, has signed  a €74.3 million export deal with India’s Remidio Innovative Solutions.
4. Marcus Evans Group, a global business intelligence and event management firm, will establish a new office in Mumbai with an export and investment pipeline of €69 million over five years.

Indian firms to expand in UK

Not only UK firms, 18 Indian firms are also set to invest significantly in UK.

1. DCube Ai, a Kerala-based artificial intelligence company, will invest €5 million across its new offices in Manchester and London. 
2.  IT consultancy LTIMindtree will expand its London presence with a €1 million investment and generate over 300 jobs.
3. Mumbai-based tech firm Aurionpro, active in cybersecurity and banking solutions, plans a €20 million investment in the UK, creating 150 new jobs.

Agriculture sector and Fisheries at benefit 

In agriculture sector, UK is set to remove tariffs on 95% of Indian agricultural and processed food items. India can now increase the exports of products like Turmeric, cardamom, pepper, mango pulp, pickles and pulses. However, no tariffs concession on dairy products, apples, edible oils and oats.

In fisheries sector, Coastal states including Andhra Pradesh, Kerala, Tamil Nadu, and Odisha will see a boost, as exports like shrimp, tuna, and feed will now enter UK market duty free. Earlier, they were  taxed between 4.2% and 8.5%.

PM Modi and PM Starmer on the FTA

Indian PM Modi said the agreement will reduce "cost of doing business" and enhance "confidence of doing business" between two major economies. On the same line, UK PM Starmer called the deal "historic" and said, "Both countries will see a boost in wages and living standards. It will bring down the prices of Indian clothes, shoes, foods for British citizens."