Archive · 24 Jul 2025
India, UK Sign Free Trade Agreement, Boosting Economic Ties
The Prime Minister of India, Narendra Modi, visited the UK to sign a new trade deal, called a Free Trade Agreement.
This deal aims to make it easier and cheaper for companies in both countries to buy and sell goods.
For example, some taxes on Indian products like clothes and shoes will be removed, and cars and whisky from the UK will be cheaper to buy in India.
The goal is to boost trade between the two countries significantly.
This agreement still needs approval from the British Parliament to become official.
In addition, an agreement was made concerning contributions to social security for Indian workers in the UK.
PM Modi visited the UK with focus on signing a Free Trade Agreement (FTA).
The FTA is expected to remove taxes on certain Indian exports, and lower costs for UK imports.
The FTA aims to double trade between India and the UK to $120 billion by 2030.
The agreement will require approval from the British Parliament before it can take effect.
The two countries also sealed a double contribution convention.
- Who
- PM Modi, British PM Keir Starmer and commerce ministers from both countries.
- What
- Signing of a Free Trade Agreement and enhancement of Comprehensive Strategic Partnership.
- When
- July 24, during PM Modi's visit to the UK.
- Where
- London, UK.
- Why
- To enhance economic partnership, foster prosperity, growth, and job creation.
Potential Challenges
Expected Benefits
Economic Impact
Potential Challenges
Concerns around the impact on certain industries in the UK.
Expected Benefits
Potential benefits of increased trade and investment in the UK.
- FTA Target
- Double trade to $120 billion by 2030
- India's exports to UK (2024-25)
- $14.5 billion (12.6% rise)
- India's imports to UK (2024-25)
- $8.6 billion (2.3% rise)
- Bilateral Trade (2023-24)
- $21.34 billion
- Number of Indian Companies in UK
- 1,000
