Archive · 23 Jul 2025
India-UK Free Trade Agreement Set for Takeoff During Modi Visit
India and the UK are making a big trade deal called a Free Trade Agreement (FTA).
This means they'll trade goods and services with fewer taxes, making it easier to buy and sell things between the two countries.
They hope to increase trade a lot.
The deal should help both countries, especially by opening up markets for Indian products like clothes and electronics.
India was careful to make sure the deal was good for them, protecting some local products and making sure Indian workers in the UK won't have to pay extra taxes.
India and the UK are set to sign a Free Trade Agreement (FTA) during PM Modi's visit, after three years of negotiations.
The FTA aims to boost bilateral trade from $55 billion to $120 billion by 2030.
The UK is a significant investor in India, and India has a large number of companies operating in the UK.
The FTA will provide duty-free access to 99% of Indian goods, benefiting sectors like automobiles, electronics, and textiles.
India secured exemptions for sensitive agricultural and industrial products and a provision for exemption from UK social security contributions.
- Who
- India and the United Kingdom are the parties involved.
- What
- India and the UK will sign a Free Trade Agreement (FTA) to boost trade.
- When
- The FTA is being signed during PM Modi's visit this week.
- Where
- The trade agreement is between India and the United Kingdom.
- Why
- To increase bilateral trade, offer duty-free access to goods, and foster economic growth.
Previous Approach
Current Approach
Approach to FTAs
Previous Approach
Previous governments signed FTAs without ensuring market access.
Current Approach
Current government focuses on reciprocal market access.
- FTA Goal
- Boost trade to $120 billion by 2030
- Negotiation Length
- Three years
- UK Investment in India
- $36 billion
- Indian Companies in UK
- Around 1,000
- India's Electronics Exports to UK (2023)
- $1.7 billion
- Goods with Duty-Free Access
- 99% of Indian goods