India-UK sign FTA

India and the United Kingdom signed a landmark Free Trade Agreement (FTA) on Thursday during Prime Minister Narendra Modi’s visit to the UK. Modi met his British counterpart Keir Starmer at Chequers, the official country residence of the UK Prime Minister. Commerce Minister Piyush Goyal and British Trade Minister Jonathan Reynolds inked the pact in the presence of PM Narendra Modi and UK PM Keir Starmer. This is the largest agreement the UK has signed with a country since leaving the European Union in 2020.
Narendra Modi described the signing of the India-UK trade pact as a milestone moment in bilateral relations. “Today marks a historic day in our relations. I am delighted that after the hard work of several years, today our two nations have signed the Comprehensive Economic and Trade Agreement,” Modi said. “New opportunities will be created in British market for India's agricultural produce and processed food industry,” he added.

Watch: PM Narendra Modi says, "With this agreement, there has also been consensus on the Double Contribution Convention. This will infuse new energy into the service sectors of both countries, especially in technology and finance. It will boost ease of doing business, reduce the… pic.twitter.com/vKbB7FtaSr

— IANS (@ians_india) July 24, 2025

Following the signing of the FTA, Starmer said the deal would deliver significant economic advantages for both nations. The UK PM said, “This is the biggest and economically most significant trade deal the UK has made since leaving EU.” “It is a deal that will bring huge benefits to both of our countries, boosting wages, raising living standards and putting more money in the pockets of working people,” he said.

#WATCH | London: As India-UK sign the Free Trade Agreement, UK PM Keir Starmer says, "It is a deal that will bring huge benefits to both of our countries, boosting wages, raising living standards and putting more money in the pockets of working people. It is good for jobs, it is… pic.twitter.com/Adnv5Rxvkn

— ANI (@ANI) July 24, 2025

As part of the deal, India's average tariff on goods imported from the United Kingdom will be reduced from 15 per cent to 3 per cent under the newly signed India-UK Free Trade Agreement, a statement issued by the British government ahead of the formal signing ceremony.

Congratulations to Prime Minister @NarendraModi ji, UK Prime Minister @Keir_Starmer, and the people of India & the United Kingdom on the signing of the landmark India-UK Comprehensive Economic and Trade Agreement (CETA).

Duty-free access for about 99% of Indian exports unlocks… pic.twitter.com/AWAwVTwtrg

— Piyush Goyal (@PiyushGoyal) July 24, 2025

The FTA is India's first major bilateral trade deal with a developed country in over 10 years. It is also the most important trade deal the UK has signed since the country voted to leave the EU in 2016 and officially left the bloc in 2020.According to officials, 99 per cent of Indian products will get duty-free access to the UK market under the agreement, which covers almost all of India's current exports to the UK. Both countries aim to double their trade value to USD 120 billion by 2030 with the help of this agreement.
The UK is India's sixth-largest investor, with total investments of around USD 36 billion. Nearly 1,000 Indian companies operate in the UK, employing over 1,00,000 people and investing about USD 2 billion. India's exports to the UK rose 12.6 per cent to USD 14.5 billion in 2024-25, while imports grew 2.3 per cent to USD 8.6 billion during the same period. Bilateral trade between the two countries rose to USD 21.34 billion in 2023-24 from USD 20.36 billion in the previous year.