Archive · 23 Jul 2025
India, UK Set to Sign Historic Trade Deal for Stronger Ties
India and the UK are making a big trade deal!
Prime Minister Modi went to the UK to sign an agreement that makes it easier for companies to trade goods and services.
This means lower taxes (tariffs) on things like cars and whisky.
The goal is to increase trade between the two countries and boost their economies.
Some people are happy about the deal, especially exporters, but others worry about competition for local businesses.
Both countries have been discussing this for a few years, and now they're ready to make it official.
Prime Minister Modi visited the UK to sign a Free Trade Agreement (FTA) and strengthen the strategic partnership.
The FTA, finalized in May 2025, aims to increase bilateral trade between India and the UK to $120 billion by 2030.
The agreement will remove trade barriers, lower tariffs, and simplify the flow of goods and services between the two countries.
Indian exports will benefit from zero duties on 99% of exports, while tariffs on items like Scotch whisky will be reduced.
Concerns exist regarding the impact of tariff reductions on domestic automobile manufacturers and the handling of carbon border taxes.
- Who
- Prime Minister Narendra Modi and UK Prime Minister Keir Starmer
- What
- Signing of a Free Trade Agreement (FTA) between India and the UK.
- When
- July 23, 2025, for a four-day visit
- Where
- United Kingdom
- Why
- To strengthen economic partnership, increase trade, and boost growth and job creation in both countries.
Supporters
Critics
Impact on Automotive Industry
Supporters
Increased Exports: Indian exporters will benefit from zero duties on 99% of exports.
Critics
Potential challenges for domestic automobile manufacturers due to tariff cuts on imported cars.
- Trade Agreement
- Comprehensive Economic and Trade Agreement (CEPA)
- Expected Bilateral Trade by 2030
- $120 billion
- Indian Exports with Zero Duties
- 99%
- Scotch Whisky Tariff Reduction
- From 150% to 75% immediately, then to 40% in 10 years
- UK Investment in India
- $36 billion
- Indian Companies in UK
- Around 1,000
