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

In a major step toward deepening economic ties, India and the United Kingdom on Thursday signed a landmark Free Trade Agreement (FTA) expected to boost bilateral trade by an estimated USD 34 billion annually.

The agreement was formalised during a high-level meeting between Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, marking a significant milestone in the economic partnership between the two nations.

According to official statements, the FTA will provide tariff reductions on 99% of Indian exports, offering significant advantages across sectors such as textiles, pharmaceuticals, and engineering goods. In return, the deal will facilitate easier access for British products-notably whisky, automobiles, and other high-value goods-into the Indian market.

Negotiations for the deal had been underway for over three years. The final agreement is being seen as a comprehensive framework that offers broad-based market access and promotes trade diversification between the two countries.

Officials noted that nearly 99% of tariff lines-which represent almost the entire volume of traded goods-will be eliminated, simplifying trade procedures and reducing costs for exporters on both sides.

The FTA is expected to strengthen supply chains, generate employment opportunities, and serve as a model for future global trade collaborations.