Historic UK-India Free Trade Agreement Signed After Three Years of Talks
In a landmark moment for international trade, India and the United Kingdom have signed a comprehensive Free Trade Agreement (FTA), concluding three years of intense negotiations. This milestone deal—India’s first major trade pact with a Western nation in over a decade—aims to double bilateral trade from $55 billion today to $120 billion by 2030.
The agreement was inked in London, with Indian PM Narendra Modi and UK PM Keir Starmer leading the historic event. Key highlights include India removing tariffs on 99% of its exports to the UK, offering a tremendous boost to sectors like textiles, leather, engineering, and jewelry. In return, Britain will slash levies on 90% of its exports to India. For example, Scotch whisky duties will fall significantly, benefiting British distillers, while Indian consumers will see more accessible UK-made cars and luxury goods.
Additionally, a new social security arrangement will exempt Indian professionals working in the UK for up to three years from National Insurance contributions, potentially saving Indian workers and companies nearly Rs 4,000 crore annually.
British government projections suggest the FTA could add ÂŁ4.8 billion to UK GDP and generate ÂŁ2.2 billion in new wages annually by increasing trade flows, which are expected to rise by ÂŁ25.5 billion per year by 2040.
The road to this agreement began in January 2022, stretching across three UK prime ministers and numerous negotiation rounds. While the FTA still awaits ratification by the British Parliament, it already marks a new era for UK-India economic ties, promising job creation, investment, and prosperity for both countries.













