In a historic milestone for international trade, India and the United Kingdom have officially signed a long-awaited Free Trade Agreement (FTA) that is expected to boost bilateral trade by nearly $34 billion annually.
Prime Minister Narendra Modi and British Prime Minister Keir Starmer signed the agreement in London on Thursday, marking a transformative moment in India-UK relations. The deal will eliminate tariffs on 90% of British exports to India, while the UK will scrap duties on 99% of Indian exports.
Prime Minister Starmer hailed the deal as a "major win for Britain," stating that it would generate thousands of jobs, unlock business opportunities, and fuel economic growth across the country.
For Indian consumers, the FTA will mean lower prices on imported items such as Scotch whisky, gin, luxury vehicles, cosmetics, and advanced medical equipment. In return, Indian sectors like textiles, leather, electronics, and agriculture are set to benefit immensely.
India's leather industry is expected to gain 5% more market share in the UK within two years, and exports of electronics and engineered goods are projected to double by 2030. Exports of gems and jewellery, currently valued at $941 million, are forecasted to double in the next three years.
The agreement also provides tariff parity for Indian farm exports with key European nations, helping to level the playing field in the global market.
Prime Minister Modi met Starmer at the UK&rsquo;s Chequers Estate before formal discussions on enhancing cooperation in trade, technology, defense, climate, health, and education. He is also scheduled to meet King Charles III later in the day.
The FTA is being seen as a cornerstone of the India-UK Comprehensive Strategic Partnership and is expected to significantly strengthen economic and diplomatic ties in the coming decade. [Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed]

India, UK Seal Landmark $34 Billion Trade Deal

Historic FTA to eliminate tariffs on 90% UK goods, 99% of Indian exports

India, UK Seal Landmark $34 Billion Trade Deal

Historic FTA to eliminate tariffs on 90% UK goods, 99% of Indian exports

July 24, 2025 | 22:00 IST