The agreement eliminates tariffs on 99% of Indian exports, opens access for British goods, and strengthens bilateral ties across trade, defense, and technology.
New Delhi, July 24, 2025
During Prime Minister Narendra Modi’s two day state visit to the United Kingdom, two important milestones were reached, and both signify a watershed moment in India-UK relations. The UK and India signed a long-awaited Free Trade Agreement (FTA), which positioned to reinvigorate the economic relationship between the two countries. After three years of negotiation, the FTA has completed negotiations and will eliminate tariffs on 99% of Indian exports while also granting greater access to the Indian market for British exports such as Scotch whisky and premium cars.
PM Modi will have high-level discussions with newly elected British PM Keir Starmer at the Chequers country estate, which aims to expand defence, emerging technologies and mutually beneficial investments. He will meet with King Charles III in UK, which is indicative of the growth of diplomatic relations between these two democracies.
The FTA comes when bilateral trade between India and UK is over $55 billion (2023-24) with the UK being the 6th largest investor in India. The FTA will create a substantial number of jobs, improve India’s export competitiveness, and pave the way for more trade agreements with other more advanced economies.
In addition to negotiating the trade agreement, during his visit the Prime Minister will also spend time with the Indian diaspora in London to thank them for their support for India, and continuing to voice the interest of the country abroad. In many ways, the visit is not just about cementing economic ties, but is also a substantive and strategic reset in the political relationship between the two countries – thus preparing both for greater cooperation as the global economy shifts.
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