PM Modi And Keir Starmer Sign Historic Free Trade Deal, UK Done Largest Treaty Since Leaving EU

24th July 2025 at 6:03 PM

2 minutes read

India and the UK on Thursday signed a landmark Free Trade Agreement (FTA), which is expected to boost bilateral trade by USD 34 billion annually.

New Delhi : India and the UK on Thursday signed a landmark Free Trade Agreement (FTA), which is expected to boost bilateral trade by USD 34 billion annually. This is the largest agreement the UK signed with a country since leaving the EU(European Union) in 2020.

The deal was signed between Commerce Minister Piyush Goyal and the UK’s Secretary of State for Business and Trade, Jonathan Reynolds. Addressing a joint press conference with Starmer by his side, PM Modi, who is on a two-day visit to the UK, said the FTA was a blueprint for India and the UK’s shared prosperity. The deal is expected to boost bilateral trade by USD 34 billion annually.

Today marks a historic day in our relations. I am delighted that after the hard work of several years, today our two nations have signed the Comprehensive Economic and Trade Agreement, he said. On one hand, Indian textiles, footwear, gems and jewellery, seafood and engineering goods will get better market access in the UK.

PM Modi said the people and industries in India will be able to access UK-made products, such as medical devices and aerospace parts, at affordable and competitive prices. Starmer said the FTA will bring huge benefits to India and the UK. It is a deal that will bring huge benefits to both of our countries, boosting wages, raising living standards and putting more money in the pockets of working people.

Starmer said with the signing of the FTA with India, the UK was sending a powerful message that the UK was open for business amid global uncertainties over US President Donald Trump’s sweeping reciprocal tariffs. In a tweet, Starmer called the FTA a “landmark deal” and said the agreement will boost the creation of jobs and business opportunities in the UK.

The FTA aims to remove or reduce tariffs on a wide range of goods and services. For India, this includes better access for labour-intensive exports such as leather, textiles, clothing and footwear. For the UK, it means cheaper imports of goods like whisky and cars.

According to officials, 99 per cent of Indian products will get duty-free access to the UK market under the agreement, which covers almost all of India’s current exports to the UK. Both countries aim to double their trade value to USD 120 billion by 2030 with the help of this agreement.

Besides easing tariffs, the deal also includes a social security agreement. It will allow Indian companies to send employees to the UK without having to make double social security contributions, saving costs for businesses. The UK is India’s sixth-largest investor, with total investments of around USD 36 billion.