Taking the UK-India partnership to the next level, India has signed a Free Trade Agreement with the United Kingdom. According to news agency ANI, UK Prime Minister Keir Starmer and PM Modi have formalised a new Free Trade Agreement (FTA).
The new agreement will allow 99% of Indian exports to enter the UK duty-free and cover nearly 100% of bilateral trade in value terms. In return, India will reduce or eliminate duties on 90% of tariff lines, which account for 92% of imports from the UK.
#WATCH | PM Narendra Modi meets Prime Minister of the UK, Keir Starmer, in London
— ANI (@ANI) July 24, 2025
(Video source: ANI/DD)#PMModiInUK pic.twitter.com/RjAAGxmzen
The new trade agreement will create significant benefits for India’s services sector by facilitating information technology and seamless outsourcing operations. It will also open doors for financial services and professional services – such as management consultancy, architecture, engineering, and other business services – to operate across both countries.
India’s tech market and indigenous innovations will gain free access to UK markets, while UK distilleries and the automotive sector will benefit from reduced tariffs when entering the Indian market.
#WATCH | London: As India-UK sign Comprehensive Economic and Trade Agreement, UK PM Keir Starmer says, "We both know that this is the biggest, most economically significant trade deal that the UK has made since leaving the EU. I think I can say that this is one of the most… pic.twitter.com/JaCP8HYsti
— ANI (@ANI) July 24, 2025
Labour-intensive sectors such as leather, footwear, textiles, and clothing will also gain access to the UK. The UK currently imports over USD 23 billion worth of these products, indicating strong potential for increased production and employment in India, particularly for young workers.
In terms of fisheries and agricultural protections, India has safeguarded its local interests by not allowing dairy imports from the UK. Additionally, certain foreign goods that could negatively impact India’s domestic markets will remain restricted.
#WATCH | London, UK: PM Narendra Modi says, "We express gratitude to PM Starmer and his Government for strongly condemning the Pahalgam terror attack. We are of one opinion that there is no place for dual paramter in the fight against terrorism. We also agree that elements with… pic.twitter.com/GNVcdNtPLQ
— ANI (@ANI) July 24, 2025
On the historic Free Trade Deal Signing between India and the UK, Prime Minister Modi said, “We express gratitude to PM Starmer and his Government for strongly condemning the Pahalgam terror attack. We are of the opinion that there is no place for dual parameters in the fight against terrorism. We also agree that elements with extremist ideology can’t be allowed to misuse democratic freedom. Those who misuse democratic freedoms to undermine democracy itself must be held to account. Regarding the extradition of economic offenders, our agencies will work with coordination and cooperation.”
#WATCH | London: India and UK sign the Comprehensive Economic and Trade Agreement.
— ANI (@ANI) July 24, 2025
(Video: ANI/DD News) pic.twitter.com/Qnrck6lDWb
India and the UK sign the Comprehensive Economic and Trade Agreement in London, in the presence of Union Minister of Commerce & Industry Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds.
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