Successfully concluded huge win-win India-UK FTA!

 

99% of Indian exports including gem & jewellery avail zero duty  

Update 1: At the invitation of the Prime Minister of the United Kingdom, the Sir Keir Starmer, Prime Minister Shri Narendra Modi will pay an official visit to the United Kingdom from 23 – 24 July 2025. This will be Prime Minister Modi’s fourth visit to the UK.  

During the visit, Prime Minister Modi will hold wide ranging discussions with Prime Minister Starmer on the entire gamut of India-UK bilateral relations. They will also exchange views on issues of regional and global importance. Prime Minister is also expected to call on His Majesty King Charles III.  

During the visit, the two sides will also review the progress of the Comprehensive Strategic Partnership (CSP) with a specific focus on trade and economy, technology and innovation, defence and security, climate, health, education and people-to-people ties. “Means, it is most likely and virtually it is confirmed that, both of the country, will sign and seal, India-UK Free Trade Agreement (FTA)” said Nayan Jani, Editor-GJ Town India; in the context.  

Hon’ble Prime Minister of India Shri Narendra Modi and Hon’ble Prime Minister of the United Kingdom Keir Starmer have announced the successful conclusion of a mutually beneficial India – UK Free Trade Agreement (FTA) on the sidelines of the G-20. This forward-looking Agreement is aligned with India’s vision of Viksit Bharat 2047 and complements the growth aspirations of both the countries.

The engagement builds upon the discussions held between the two Prime Ministers on the sidelines of the G-20 Summit in Rio de Janeiro, Brazil, in November 2024. 

Following the meeting between the two Prime Ministers, intense FTA negotiations resumed in February 2025 marked by several engagements between the Commerce and Industry Minister Piyush Goyal and the U.K. Secretary of State Jonathan Reynolds and their teams.  

Prime Minister Shri Narendra Modi stated in his social media post on X (formerly twitter) “In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention. These landmark agreements will further deepen our Comprehensive Strategic Partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies.” The Union Minister for Commerce and Industry Piyush Goyal thanked the Prime Minister for his guidance and encouragement which made the trade deal possible, and under whose visionary leadership India is looked upon as, Vishwa Mitra - Trusted Partner of the world.  

Goyal stated, “This Agreement sets a new benchmark for equitable and ambitious trade between two large economies. It will benefit Indian farmers, fishermen, workers, MSMEs, startups and innovators. It brings us closer to our goal of becoming a global economic powerhouse. This FTA is not only about goods and services, but also about people, possibilities and prosperity. It protects our core interests while opening doors to India’s greater participation in global value chains”

The Commerce Secretary Sunil Barthwal emphasised that this FTA is a game changer and will set India further on the path of rapid economic growth and benefit India’s global integration. This is the most comprehensive free trade deal ever entered into by India and will be the gold standard for our future engagements.  

The FTA takes place in the backdrop of growing economic relations between India and the UK as exemplified in the bilateral trade of about USD 60 billion which is projected to double by 2030. 

The FTA with the UK is a modern, comprehensive and landmark agreement which seeks to achieve deep economic integration along with trade liberalisation and tariff concessions. The FTA ensures comprehensive market access for goods, across all sectors, covering all of India’s export interests. India will gain from tariff elimination on about 99% of the tariff lines covering almost 100% of the trade value offering huge opportunities for increase in the bilateral trade between India and the UK.

The FTA provides positive impact on manufacturing across labour and technology intensive sectors and opens up export opportunities for sectors such as textiles, marine products, leather, footwear, sports goods and toys, gems and jewellery and other important sectors such as engineering goods, auto parts and engines and organic chemicals. This will substantially improve Indian goods competitiveness in the UK vis-a-vis other countries.

Apart from gem & jewellery exports & investment opportunities, the FTA has many highlights to focus in a win-win agreement. As two leading democracies and global innovation hubs, India and the UK reaffirm their commitment to strengthening economic cooperation and working together to address global challenges. The India – UK FTA sets a new benchmark for fair, ambitious, and modern trade agreements worldwide.