India, UK Sign Historic Free Trade Agreement During PM Modi’s London Visit

The Free Trade Agreement is positioned as a transformative step for both economies, designed to reduce trade barriers, eliminate tariffs, and create new business opportunities

UK Prime Minister Keir Starmer highlighted the deal’s economic significance in a post on X

Source : ANI

India and the United Kingdom formally signed their long-anticipated Free Trade Agreement (FTA) on Thursday. The signing took place in London during Prime Minister Narendra Modi’s official two-day visit to the UK, with UK Prime Minister Keir Starmer present at the ceremony. The agreement aims to enhance economic cooperation and foster long-term trade growth between the two nations.

The Free Trade Agreement is positioned as a transformative step for both economies, designed to reduce trade barriers, eliminate tariffs, and create new business opportunities. The deal is in line with India’s long-term economic roadmap, Viksit Bharat 2047, and reflects a shared vision for growth. It marks the successful conclusion of negotiations that were officially announced on May 6 by both leaders.

“This FTA is forward-looking and complements the aspirations of both countries,” read a joint statement. The pact sets an ambitious goal to raise bilateral trade volumes to USD 120 billion by 2030.

UK Welcomes Economic Boost

UK Prime Minister Keir Starmer highlighted the deal’s economic significance in a post on X, saying, "A landmark deal with India means jobs, investment and growth here in the UK. It creates thousands of British jobs, unlocks new opportunities for businesses and puts money in the pockets of working people. That's our Plan for Change in action."

#WATCH | London: India and UK sign the Comprehensive Economic and Trade Agreement.

(Video: ANI/DD News) pic.twitter.com/Qnrck6lDWb

— ANI (@ANI) July 24, 2025

According to the UK government, the agreement will dramatically cut average Indian tariffs on British products—from 15 per cent to 3 per cent—enhancing competitiveness for a wide range of UK exports including automobiles, medical devices, beverages, and cosmetics.

Opportunities Across Key Sectors

India’s Ministry of Commerce and Industry emphasized that the deal grants wide-ranging market access, covering nearly all of India's key export sectors. Tariffs will be removed on about 99 per cent of tariff lines, representing almost 100 per cent of the trade value.

Sectors expected to benefit on the Indian side include textiles, gems and jewellery, leather, sports goods, engineering components, auto parts, marine products, and organic chemicals.

Boost For UK Whisky Exports

Among the notable changes, British whisky producers are poised to benefit significantly. Under the FTA, whisky tariffs will be cut in half immediately—from 150 per cent to 75 per cent—and gradually reduced to 40 per cent over the next decade. The UK government underscored that this move would provide British distillers a competitive edge in India's large and growing spirits market.