• Source:JND

Prime Minister Narendra Modi on Tuesday announced a landmark achievement in the India-UK relationship, as he and British counterpart Keir Starmer concluded a historic Free Trade Agreement (FTA) and a Double Contribution Convention. These agreements are poised to significantly enhance bilateral ties, creating opportunities for greater trade, investment, and economic growth between the two nations.

Both leaders hailed the agreements as a historic milestone in their Comprehensive Strategic Partnership. The FTA, which covers trade in goods and services, is expected to boost trade volumes, generate new employment opportunities, and raise living standards for citizens in both countries. The agreements further aim to unlock new potential for the joint development of products and services, creating a more robust global market presence for both India and the UK.

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The leaders highlighted the historic India-UK trade deal as the largest for the UK since leaving the EU and the most ambitious for India. PM Keir Starmer also expressed his condolences over the tragic loss of life in the recent Jammu and Kashmir terrorist attack.

PM Modi invited his counterpart to India, and the UK Prime Minister agreed to visit at the earliest opportunity. UK Prime Minister Keir Starmer also hailed it as a significant win for British businesses, workers, and consumers. In a post on X, Starmer said the deal is expected to boost trade, investment, and job creation, aligning with the UK government's Plan for Change.

Expanding Opportunities For Skilled Professionals

PM Starmer emphasised the importance of reducing trade barriers and strengthening global alliances as part of the UK's "Plan for Change" to foster a stronger, more secure economy. This partnership, he said, is central to the UK’s efforts to enhance its economic ties with large and open-market economies like India.

According to the statement by MEA, FTA will open new avenues for businesses in both countries to thrive, while also facilitating greater access for skilled professionals from India and the UK. Earlier, Indian Commerce Minister Piyush Goyal had met with UK officials to push forward the FTA discussions, focusing on reducing customs duties, easing trade regulations, and fostering bilateral investments. 

FICCI Hails India-UK Free Trade Deal 

FICCI President Harsha Vardhan Agarwal welcomed the signing of the India-UK Free Trade Agreement (FTA), calling it a major step toward shared prosperity. He said the deal would energise key sectors like FMCG, healthcare, and innovation, and praised PM Modi’s leadership in strengthening India’s global economic stature. 

“The India-UK Free Trade Agreement is not just a trade pact—it’s a bridge to shared prosperity. It brings a new momentum to sectors like FMCG, healthcare, and innovation-driven enterprises. Guided by Prime Minister Modi’s bold and strategic leadership, this milestone reflects India’s growing stature as a global economic force and a trusted partner in progress,' said Agarwal.

According to official sources, the newly signed India-UK Free Trade Agreement include
s substantial tariff reductions aimed at enhancing bilateral trade and investment. India will cut tariffs on 90 per cent of UK imports, with 85 per cent of those becoming completely tariff-free within the next decade. The deal also includes major reliefs for UK exporters, such as halving import duties on whisky and gin to 75 per cent and reducing auto tariffs to 10 per cent under a quota system.

The agreement is projected to significantly benefit the UK economy, with expectations of boosting UK GDP by £4.8 billion annually by 2040. Bilateral trade between the two countries is also forecast to rise by £25.5 billion per year by the same timeframe, marking a major leap in economic ties.

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