Archive · 24 Jul 2025
India-UK FTA to Enhance Trade and Benefit Indian Workers
India and the UK made a deal to help each other trade.
This means it will be easier and cheaper for companies to sell things between the two countries.
One big part of this deal is that Indian workers in the UK won't have to pay certain taxes for a few years, helping them and their companies.
Also, it will make it easier for the UK to sell things like cars and whisky to India.
The deal should make the UK and India's economies stronger together.
India and the UK signed a Free Trade Agreement (FTA) on July 24, 2025, aiming to boost bilateral trade.
The FTA will reduce tariffs on British goods and benefit Indian IT companies operating in the UK.
Indian companies in the UK won't have to make social security contributions for up to three years for transferred employees, benefiting over 75,000 workers.
Airbus and Rolls-Royce secured a £5 billion deal to supply aircraft and engines to Indian airlines due to the FTA.
The agreement is expected to boost bilateral trade by approximately USD 34 billion annually.
- Who
- India and the United Kingdom
- What
- The signing of a Free Trade Agreement (FTA) between India and the UK.
- When
- July 24, 2025
- Where
- UK and India
- Why
- To boost bilateral trade and economic cooperation.
Benefits for India and its Workers
Benefits for the UK
Economic Impact
Benefits for India and its Workers
The agreement reduces tariffs, increasing exports from India and benefitting many IT companies and other service providers operating in the UK.
Benefits for the UK
The UK benefits from increased exports of goods such as whisky and cars.
IT Industry Impact
Benefits for India and its Workers
Indian workers in the UK will benefit from the exemption from social security contributions.
Benefits for the UK
Indian IT firms will be able to operate more easily in the UK, with the ability to move workers more easily to on-site projects.
- Agreement
- India-UK Free Trade Agreement (FTA)
- Date Signed
- July 24, 2025
- Beneficiary workers
- 75,000 Indian workers
- Benefits for Indian IT companies
- Exemption from social security contributions for up to 3 years
- Estimated Trade Boost
- USD 34 billion annually
- Key Deal for aircrafts
- £5 billion deal
