India-UK Free Trade Agreement has successfully concluded a significant FTA, bringing to a close almost three years of discussions. The deal, announced on May 6, 2025, is designed to make trade between the two countries easier and more profitable, and comes at a time when global trade is facing many challenges.
Prime Minister Narendra Modi shared on X that this agreement, along with a Double Contribution Convention, will deepen the partnership between India and the UK and boost trade, investment, job opportunities, and innovation in both countries. He also offered an invitation to UK Prime Minister Keir Starmer to visit India soon.
In a phone call, both leaders described the FTA as a historic step that will help businesses, create jobs, and encourage innovation in both economies. PM Starmer said the deal fits into the UK’s plan to strengthen its economy by building new alliances and lowering trade barriers.
Industry groups in India welcomed the agreement, saying it will help Indian exporters reach the UK market more easily and could push bilateral trade toward the $100 billion mark by 2030.
Key features of the India-UK FTA include:
– Tariff cuts: India plans to lower or eliminate tariffs on 90% of the goods it imports from the UK, whereas the UK will abolish tariffs on 99% of exports from India. This will enhance the competitiveness of products such as textiles, leather items, and seafood.
– Lower costs: British products such as whisky, gin, medical equipment, and advanced machinery will become cheaper in India, while Indian products like clothing, footwear, and seafood will be more affordable in the UK.
– Automotive benefits: Tariffs on UK cars exported to India will drop significantly, helping UK automakers and increasing consumer choice in India.
– Professional movement: The Free Trade Agreement will facilitate the ability of Indian professionals to work in the UK by simplifying visa procedures and providing social security waivers for temporary employees.
– Job creation and growth: Both countries expect the agreement to create new jobs, support economic growth, and encourage investment and innovation.
Some sensitive sectors, like sugar, milled rice, and certain electronics, are excluded from the agreement to protect domestic industries.
Overall, the India-UK FTA is seen as a win-win deal that will open up new opportunities for businesses, boost trade and investment, and strengthen the long-standing relationship between the two countries.
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