Archive · 24 Jul 2025
India, UK Sign FTA Amid Criticism, Aiming to Boost Trade
India and the UK are making a big trade deal to make it easier to buy and sell things between the two countries.
This means fewer taxes on goods like clothes, cars, and whisky.
The UK will get easier access to sell items in India, and India will gain access to the UK.
Some people are happy about this, saying it will boost trade, but some people are not completely happy about it.
This new trade deal is expected to start in about a year after it gets approved by both countries.
India and the UK are set to sign a Free Trade Agreement (FTA) in London.
The FTA aims to eliminate tariffs on 99% of Indian exports to the UK and reduce tariffs on UK goods to India.
The Congress party criticized the Modi government, suggesting a 'Fugitive Transfer Agreement' is more needed.
The deal is expected to benefit sectors like textiles, automobiles, and whisky.
The agreement is expected to come into effect after legal clearances from both countries.
- Who
- The agreement involves India and the UK, with Prime Ministers Narendra Modi and Keir Starmer present.
- What
- India and the UK are set to sign a Free Trade Agreement (FTA).
- When
- The FTA signing took place on Thursday and will come into effect in about a year.
- Where
- The FTA is being signed in London.
- Why
- To increase trade and provide market access for goods from both countries.
Congress Party View
Government Perspective
Criticism of FTA
Congress Party View
The Congress criticized the FTA, suggesting that a 'Fugitive Transfer Agreement' would be more beneficial.
Government Perspective
The government believes that FTA will benefit both countries.
- FTA
- India-UK Free Trade Agreement
- Tariff Elimination (India)
- 99% of exports
- UK GDP increase (projected)
- £4.8 billion annually (long term)
- Expected implementation
- Within a year
- Key Benefit for India
- Duty-free access to the UK market for Indian goods