U.K. and India seal historic free trade agreement
The India-UK Free Trade Agreement (FTA) was officially signed on July 24, 2025, by Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, marking a significant milestone after three years of negotiations and finalization in May 2025. This comprehensive economic trade agreement aims to substantially increase bilateral trade and investment, underpinning the broader India-UK strategic partnership outlined in the new India-UK Vision 2035 framework.
The agreement, which is awaiting the British Parliament's endorsement, has received strong governmental backing on both sides, as India’s union cabinet has approved the FTA. The deal is expected to undergo a year-long ratification process before full implementation.
Key provisions of the FTA include tariff reductions, sectoral benefits, and trade volume goals. The FTA slashes tariffs on 90-99% of traded goods between the two countries, with India enjoying 99% duty-free access to the UK market for its exports. In contrast, tariffs on 90% of UK exports will be reduced, with approximately 85% becoming zero-duty within ten years.
Indian sectors such as leather, footwear, and clothing will benefit from reduced tariffs, while UK sectors like whisky (tariffs cut from 150% to 75% immediately and then to 40% over a decade) and automobiles stand to gain significantly. The FTA aims to double trade volume from current levels to $120 billion by 2030, with projections suggesting a £25.5 billion boost in annual bilateral trade.
Beyond trade, the FTA is coupled with a strategic cooperation plan, "India-UK Vision 2035," which seeks to deepen ties beyond trade into technology, defense, education, climate, and innovation—promoting long-term mutual growth and global leadership.
While the India-UK FTA represents a major shift for both economies, its full impact depends on the timely ratification by the UK Parliament and effective implementation of the agreement’s provisions.
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- The India-UK Free Trade Agreement, signed by Prime Minister Narendra Modi and UK Prime Minister Keir Starmer on July 24, 2025, is expected to significantly boost bilateral trade and investment, with tariff reductions and sectoral benefits provided in the agreement.
- Beyond the India-UK FTA, various global issues such as the humanitarian crisis in Gaza, the political crisis in Ukraine, and the hunger crisis in Nigeria are making headlines in the general-news sector.
