Archive · 24 Jul 2025
India and UK Sign Historic Free Trade Agreement
India and the UK made a deal to make it easier for them to trade goods and services.
This agreement removes or lowers taxes on many items, like cars, clothes, and food.
Indian businesses will now be able to sell more goods to the UK at lower prices.
The deal will help boost the Indian textile industry, and farmers.
It also impacts the auto industry by making certain cars cheaper for Indian consumers while protecting the local EV market.
This trade deal aims to make it easier for the two countries to work together and trade more with each other.
India and the UK signed a free trade agreement (FTA) on Thursday, aiming to double bilateral trade by 2030.
The agreement offers duty concessions on large petrol and diesel vehicles, and high-priced EVs.
The FTA is expected to boost India's textile exports, with potential for ready-made garment exports to more than double.
Indian farmers are expected to benefit from zero-duty access for 95% of agricultural imports by the UK.
The deal includes provisions for professional mobility, and government-to-government dispute resolution.
- Who
- India and the United Kingdom.
- What
- India and the UK signed a Comprehensive Economic and Trade Agreement (CETA).
- When
- Thursday.
- Where
- London.
- Why
- To enhance bilateral trade, reduce tariffs, and foster economic cooperation.
India: Benefits of the FTA
UK: Benefits of the FTA
Market Access & Production Capacity
India: Benefits of the FTA
Boost to exports, especially textiles and agriculture, providing zero duty access and market access.
UK: Benefits of the FTA
UK market access is seen as an opportunity for a boost in various Indian industries. There is some debate on the speed at which the Indian textile industry can scale up production to meet demand.
Automotive Sector
India: Benefits of the FTA
Reduced tariffs on UK cars for Indian consumers.
UK: Benefits of the FTA
Tariff reductions may affect the automotive industry. Also there are concerns over the carbon border adjustment mechanism (CBAM) levies of UK.
Tariff Advantages
India: Benefits of the FTA
Focus on the advantages Indian exporters will get over competitors from countries like Bangladesh, Vietnam and China in the UK Market.
UK: Benefits of the FTA
Tariffs are to be reduced by the CETA. The Indian exporters would have a stronger edge over competitors.
- Agreement Name
- India-UK Comprehensive Economic and Trade Agreement (CETA)
- Expected Trade Increase
- $34 billion annually
- Target Bilateral Trade by 2030
- $120 billion
- Key Indian Exports benefiting
- Textiles, gems, jewelry, marine products, leather goods, processed foods, engineering items
- Duty Concessions for Cars
- Large petrol, diesel and high-priced EVs
- Benefit for Indian Farmers
- Zero-duty access for 95% of agri imports
Sources
A bilateral game changer
India-UK FTA is a boon to Indian textile industry
PM Modi Meets King Charles III Following Signing of Free Trade Agreement with UK
Duty Concessions On Large Petrol, Diesel Vehicles, High-Priced EVs Under FTA: All You Need To Know
Indian farmers to benefit from zero duty import by UK of many agri items
