ECONOMY
India, UK sign mega agreement, aimed at doubling bilateral trade by 2030
- IBJ Bureau
- Jul 25, 2025
Minister Narendra Modi and his United Kingdom (UK) counterpart Keir Starmer on Thursday witnessed the signing of landmark free trade agreement (FTA) between India and the UK, aimed at doubling the current $56-billion bilateral trade between the two nations by 2030.
The agreement was signed upon Mr Modi’s arrival in the UK on Wednesday in the first leg of his two-nation visit. On Thursday, he met his UK counterpart in London ahead of the formal signing of the FTA. The bilateral meeting took place at the historic Hawtry Room, where the two leaders held a one-on-one discussion to finalise the contours of what is being described as India’s most comprehensive trade pact and the UK’s most significant post-Brexit deal.
“Today marks a historic day in our relations. I am delighted that after the hard work of several years, today our two nations have signed the comprehensive economic and trade agreement,” Mr Modi said, adding that Indian textile, footwear, seafood, engineering goods, gems and jewellery exports will get better access to the UK market.
The FTA ensures zero tariffs on 99 per cent of Indian exports to the UK, covering nearly 100 per cent of trade value. The move will eliminate import duties on sectors like textiles, leather, footwear, gems and jewellery, making Indian goods more competitive in the UK market.
The landmark trade pact is set to make it easier for British companies to export whisky, cars and other products to India besides boosting the overall trade basket. This agreement is a big win for farmers, ensuring duty-free exports on nearly 95 per cent of agricultural products, while fisherfolk gain from zero duty on 99 per cent of marine exports, boosting their incomes.
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