In a major development for India-UK relations, both countries have formally concluded a long-anticipated Free Trade Agreement (FTA) along with a Double Contribution Convention, aimed at enhancing economic cooperation and strengthening their Comprehensive Strategic Partnership.
Prime Minister Narendra Modi announced the breakthrough via a post on X following a conversation with his British counterpart, Prime Minister Keir Starmer. “Delighted to speak with my friend PM Keir Starmer. 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,” wrote PM Modi.
He highlighted the FTA as a catalyst for deeper collaboration, noting that it is expected to significantly boost trade, investment, job creation, and innovation across both economies. PM Modi also hinted at a potential upcoming visit from the UK Prime Minister, saying, “I look forward to welcoming PM Starmer to India soon.”
Echoing the sentiment, UK PM Keir Starmer described the agreement as a “historic moment,” calling it a victory for British businesses, workers, and consumers. “Today Britain has agreed a landmark trade deal with India. Fantastic news for British business, British workers, and British shoppers, delivering on our Plan for Change,” he stated on X.
The Prime Minister’s Office (PMO) elaborated that the FTA represents a pivotal element of the evolving India-UK partnership. The agreement, covering both goods and services, is expected to significantly expand bilateral trade, improve living standards, and create new job opportunities. According to the official statement, the FTA provides a foundation for deeper collaboration in various sectors and reinforces the strategic alignment between the two nations.
As is standard in FTAs, the deal aims to reduce or eliminate tariffs on a wide range of products and improve market access for services and investments. India has sought better opportunities for its professionals, especially in the UK’s IT and healthcare industries, and duty-free access for key exports.
Meanwhile, the UK has reportedly pushed for lower tariffs on items such as Scotch whisky, electric vehicles, lamb meat, chocolates, and other confectionery products. It also aims to expand its role in India’s services sector, including telecommunications, legal services, finance, banking, and insurance.
The Global Trade Research Initiative (GTRI) noted that Indian exports such as textiles, garments, carpets, footwear, marine products, grapes, and mangoes stand to benefit under the agreement, thanks to the UK’s relatively low import duties on these goods.