ECONOMY
India, UK seal FTA deal, pact targets $100-billion bilateral trade by 2030
- IBJ Bureau
- May 07, 2025
India and the UK sealed a historic free trade agreement (FTA) on May 6, which is expected to benefit 99 per cent of Indian exports from tariff.
Announcing the deal, Prime Minister Narendra Modi said: “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. These landmark agreements will further deepen our comprehensive strategic partnership and catalyse trade, investment, growth, job creation and innovation in both our economies.”
The trade deal is the biggest the UK has done since leaving the EU.
The FTA will now make British Scotch whiskey and cars cheaper in India, while reducing duties on Indian imports such as garments and leather products. The trade agreement aims to take the bilateral trade to $100 billion by 2030. It is also expected to add 4.8 billion pounds annually to the British economy by 2040, according to official estimates.
The UK began free trade talks with India in January 2022, viewing the deal as one of Brexit’s most valuable opportunities. However, multiple Conservative-led governments failed to finalise the agreement despite efforts to secure it swiftly.
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