🇮🇳🇬🇧 India-UK Free Trade Agreement Signed in Landmark Moment for Bilateral Ties
London, July 24 – In a historic move set to reshape economic ties between India and the UK, the long-anticipated India-UK Free Trade Agreement (FTA) was officially signed today in London. The signing ceremony took place in the presence of Indian Prime Minister Narendra Modi and his UK counterpart Keir Starmer, marking a new chapter in the partnership between the two nations.
Prime Minister Modi is currently on a two-day official visit to the UK.
A Win-Win Deal for Both Economies
The FTA is designed to remove or significantly reduce tariffs on a wide range of goods and services traded between India and the UK. This move is expected to boost competitiveness for businesses in both countries, lower consumer prices, and open up new trade opportunities.
“A landmark deal with India means jobs, investment, and growth here in the UK… That’s our Plan for Change in action,”
— UK PM Keir Starmer posted on X (formerly Twitter)
The agreement aligns with India’s ambitious Viksit Bharat 2047 vision, and supports both countries’ shared goal to expand bilateral trade to USD 120 billion by 2030.
Key Sectors to Benefit
The trade deal is expected to give a major boost to several Indian sectors, including:
- Textiles & Apparel
- Leather & Footwear
- Sports Goods & Toys
- Marine Products
- Gems & Jewellery
- Engineering Goods
- Automotive Components
- Organic Chemicals
According to India’s Ministry of Commerce and Industry, the deal will provide comprehensive market access, with tariff elimination on approximately 99% of tariff lines, covering almost 100% of trade value.
What’s in it for the UK?
British businesses stand to benefit significantly. The UK government announced that India’s average tariff on UK products will fall from 15% to just 3%, making it easier for British companies to sell goods like:
- Soft drinks
- Cosmetics
- Automobiles
- Medical devices
A major highlight for the UK is the reduction of tariffs on British whisky:
- Immediately cut from 150% to 75%
- Reduced further to 40% over the next 10 years
This gives British whisky brands a clear edge in the growing Indian market, ahead of other international competitors.
