Archive · 24 Jul 2025
India and UK Sign Historic Free Trade Agreement
India and the UK made a big deal to make trade easier!
They signed a Free Trade Agreement, which means less tax on goods going between the countries.
This helps businesses by making things cheaper to buy and sell.
Indian businesses can now easily sell things like clothes, shoes, and electronics to the UK.
The UK will be able to sell cars, whisky, and more to India.
Both countries hope this will make them richer and create more jobs.
India and the UK signed a Free Trade Agreement (FTA), the India-UK Comprehensive Economic and Trade Agreement (CETA).
The agreement aims to reduce tariffs, boost trade, and open opportunities for Indian exports, especially labor-intensive sectors.
The deal is expected to unlock duty-free access for about 99% of Indian exports, and potentially increase bilateral trade by $34 billion annually.
The FTA will impact sectors like engineering goods, electronics, pharma, and food processing, and support Indian startups.
The agreement includes reduced tariffs on items like Scotch whisky, gin, UK-manufactured cars, and various Indian exports.
- Who
- India and the United Kingdom.
- What
- India and the UK signed a Free Trade Agreement (FTA) to boost trade.
- When
- Signed on July 24 (based on the articles' publication date).
- Where
- The agreement was signed during a meeting in London and Chequers, UK.
- Why
- To reduce tariffs, boost trade, and create economic opportunities for both countries.
Indian Perspective
UK Perspective
Overall Benefit
Indian Perspective
The deal marks India's first major bilateral trade deal with a developed economy in over a decade. It will help inclusive and gender-equitable growth and create jobs
UK Perspective
N/A
- Agreement Name
- India-UK Comprehensive Economic and Trade Agreement (CETA)
- Key Parties
- India and the United Kingdom
- Duty-Free Access
- Approximately 99% of Indian exports
- Potential Trade Boost
- ~$34 billion annually
- Tariff Reduction (Example)
- Import duties on Scotch whisky/gin will drop from 150% to 75% immediately
