Archive · 24 Jul 2025
India-UK FTA Set to Boost Trade and Investment
India and the UK have made a deal to trade more goods and services easily.
This means it should be easier for businesses in both countries to sell things to each other, and may double the value of trade between the two countries.
It also means that Indian professionals like chefs and nurses, will find it easier to work in the UK.
India’s chemical exports should significantly increase too, with the deal cutting taxes on these products.
India and the UK signed a Free Trade Agreement (FTA) expected to boost bilateral trade.
The FTA aims to more than double bilateral trade to $120 billion in five years.
The deal is expected to increase opportunities for Indian pharma, medical device, and generic drugmakers.
Indian professionals will find it easier to work in the UK, with eased mobility norms.
The agreement is anticipated to trigger a 30-40% increase in India’s chemical exports to the UK, to $650-750 million.
- Who
- India and the UK
- What
- India and the UK signed a Free Trade Agreement (FTA) to boost trade.
- When
- July 24, 2025
- Where
- India and the UK
- Why
- To increase trade and economic cooperation.
Concerns for UK industry
Benefits for India
Local Industry Impact
Concerns for UK industry
Some sectors, like automobiles and alcoholic beverages, expressed concerns about the impact on local industry.
Benefits for India
Concerns were carefully managed through calibrated impact on local industry.
- Expected Trade Increase
- To $120 billion over five years
- Current Trade Volume
- $56 billion
- Average duty on UK imports
- To fall from 15% to 3%
- Chemical export increase
- 30-40% to $650-750 million
