In a historic development on Thursday, Prime Minister Narendra Modi and UK leaders signed the long-negotiated India-UK Free Trade Agreement (FTA), ushering in a new chapter of economic and strategic partnership between the two democracies. The pact is projected to increase bilateral trade by 39%—from $21 billion to over $34 billion annually by 2040.
Speaking at the signing ceremony in London, PM Modi hailed the agreement as “not merely economic, but a blueprint for shared prosperity” that would boost key Indian sectors like textiles, gems & jewelry, and MSMEs, while enabling access to affordable medical devices and aircraft parts.
British Whisky, Cars Enter India in Phases, 99% Tariff Elimination
Although it will be implemented gradually, the agreement guarantees the complete removal of tariffs on 99 percent of all trade lines, opening Indian markets to luxury automobiles and fine British whisky. With nearly 100% trade value coverage across sectors, the Indian Commerce Ministry hailed the move as historic.
PM Modi emphasized the mutual gains, stating, “The UK will benefit from India’s skilled talent, and we will gain from their advanced services, especially in technology and finance. This is true ease of doing business, built on trust.”
Double Contributions Convention, Defence Roadmap, and Vision 2035 Unveiled
A major highlight was the Double Contributions Convention, which Modi said would breathe new life into service sectors on both sides. It is expected to reduce business costs and build confidence across the corporate spectrum.
The agreement also includes a Defence Industrial Roadmap, expanding joint efforts in technology security, AI, semiconductors, and cybersecurity. Under Vision 2035, India and the UK will deepen collaboration in defence, education, climate, and digital innovation.
Education Gets a Boost: Six UK Universities to Open Campuses in India
According to PM Modi, six UK colleges are opening campuses in India; the University of Southampton has already done so in Gurugram. This suggests a desire for greater interpersonal connectivity and knowledge sharing.
Indo-Pacific, Ukraine, West Asia on Agenda
On the geopolitical front, Modi reiterated India’s stance for peace and stability. “We continue to exchange views on the Indo-Pacific, the Ukraine conflict, and West Asia. Respect for sovereignty and territorial integrity is non-negotiable. Today’s era demands development, not expansionism.”
A Deal Decade in the Making
Negotiated over several years and across changing governments, the FTA is widely seen as a turning point for post-Brexit UK and a symbol of India’s growing global influence. It cements India’s role as a vital trade and strategic partner in an era marked by shifting alliances and emerging digital economies.
