India, UK sign landmark Free Trade Agreement
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India and the United Kingdom on Thursday finalised a historic free trade agreement (FTA) aimed at doubling trade between the two nations.
The pact is expected to significantly enhance Indian exports in sectors like textiles, leather, and engineering goods, while also reducing tariffs on key British exports such as whisky, automobiles, and medical equipment.
The deal was formalised by Union Minister Piyush Goyal and U.K. Trade Secretary Jonathan Reynolds, with Prime Ministers Narendra Modi and Keir Starmer in attendance. External Affairs Minister S. Jaishankar and U.K. Chancellor Rachel Reeves were also present during the ceremony, which took place at Chequers, the British Prime Minister’s official country residence, located around 50 kilometres from London.
Following the agreement, both leaders are also set to introduce a joint "UK-India Vision 2035" roadmap to deepen their strategic partnership in an evolving global landscape, AFP reported.
The United Kingdom has stated that Indian consumers will gain greater access to high-quality British products — ranging from soft drinks and cosmetics to automobiles and medical devices — thanks to reduced tariffs under the newly signed free trade agreement. Average tariffs, currently around 15%, are expected to fall to just 3% once the deal takes effect.
The UK, which already imports £11 billion worth of goods from India, said that lower trade barriers on Indian exports will make Indian products more accessible and affordable for British consumers and businesses, ultimately boosting Indian exporters.
Prime Minister Keir Starmer called the agreement a significant achievement for the UK. He said it would generate thousands of jobs across the country, open up new opportunities for businesses, and fuel economic growth nationwide — aligning with the government’s broader "Plan for Change."
The UK also emphasised that the newly launched Vision 2035 goes beyond trade. It represents a renewed commitment between the two nations to foster prosperity, encourage innovation, and strengthen defence ties through a new Defence Industrial Roadmap.
The agreement also includes broader cooperation goals, such as strengthening border security, addressing climate change, and enhancing educational partnerships between India and the UK.
Regarding the Free Trade Agreement (FTA), the UK government stated that it is projected to increase annual bilateral trade by £25.5 billion (approximately USD 34 billion). According to British officials, the deal marks India’s most extensive trade agreement to date and is considered the UK’s most economically impactful bilateral trade pact since its departure from the European Union.
They emphasised that the agreement will substantially improve market access for businesses on both sides, resulting in more affordable goods and services for consumers.
Prime Minister Narendra Modi arrived in London on Wednesday as part of his two-nation tour to the UK and the Maldives. He met with UK Prime Minister Keir Starmer at Chequers, the official country residence of the British Prime Minister, located about 50 kilometres northwest of London.
