India and the UK signed a landmark Free Trade Agreement (FTA) on 24 July 2025 during Prime Minister Narendra Modi’s visit to the UK, alongside UK PM Keir Starmer. The deal aims to double bilateral trade to $120 billion by 2030, creating new opportunities for exports, employment, and investment.
🔹 Key Benefits for India:
- Zero tariffs on 99% of Indian exports to the UK
- Boost to textiles, gems, leather, IT, auto parts, chemicals
- Easier mobility for Indian professionals
- Social security exemption for up to 3 years
- Major gains for MSMEs and labour-intensive sectors
🔹 Key Benefits for the UK:
- Gradual tariff cuts on Scotch whisky (from 150% to 40% in 10 years)
- Reduced duties on cars, cosmetics, aerospace & medical devices
- Access to Indian government tenders worth ₹4 lakh crore
- Equal access to India’s financial services sector
The agreement also covers innovation, intellectual property, services, and labour rights, without compromising on India’s drug, food, or NHS standards. It will take full effect after UK Parliament ratification.
