India and UK Sign Landmark Free Trade Agreement to Boost Bilateral Trade by $34 Billion Annually

Prime Minister Narendra Modi and UK Prime Minister Keir Starmer formally signed a landmark Free Trade Agreement (FTA) between India and the United Kingdom, ushering in a new era of economic partnership. The historic deal is expected to boost bilateral trade by an estimated $34 billion annually, transforming the commercial landscape for businesses in both nations.

Under the agreement, Indian exporters will gain broader access to the UK market through reduced tariffs and simplified regulatory processes. This will open significant opportunities for sectors such as textiles, leather, footwear, gems and jewelry, marine products, and more—especially benefiting micro, small, and medium enterprises (MSMEs) and artisans.

For British exporters, the deal delivers a major breakthrough by cutting average tariffs on key products—from soft drinks and cosmetics to medical devices and automobiles—dropping from 15% to just 3%. These reduced duties will make British goods more affordable and competitive in the expansive Indian market, benefiting manufacturers and consumers alike.

The FTA also strengthens cooperation on intellectual property rights and encourages sustainable production methods and the adoption of digital tools, enabling businesses from both countries to enhance efficiency and innovation.

Prime Minister Keir Starmer hailed the deal as “a major win for Britain,” emphasizing its potential to create thousands of jobs, increase wages, and unlock new business opportunities across key sectors such as aerospace, technology, and advanced manufacturing.

Echoing this sentiment, Prime Minister Modi highlighted the agreement’s alignment with India’s vision of Viksit Bharat 2047 and its critical role in shaping a prosperous economic future with the UK.

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