India and the United Kingdom have successfully concluded a long-awaited and “mutually beneficial” Free Trade Agreement (FTA), marking a major step forward in their strategic partnership. Prime Minister Narendra Modi and his UK counterpart Keir Starmer confirmed the deal during a phone conversation on Tuesday.
“Delighted to speak with my friend PM @Keir_Starmer. In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention,” Modi posted on X. He added that the agreement would accelerate trade, investment, job creation, and innovation in both economies.
The FTA has been three years in the making. First proposed in 2022 during Boris Johnson’s tenure, the deal faced delays over disagreements on tariffs for automobiles and alcohol, and ongoing political changes in the UK.
The two nations now celebrate the agreement as a game-changer that will open new avenues for businesses, enhance bilateral trade, and strengthen economic ties between two large, open-market democracies. Starmer described it as part of the UK’s “Plan for Change,” aimed at creating a stronger and more secure economy through strategic global partnerships.
Commerce Minister Piyush Goyal’s recent visits to London played a key role in sealing the deal, after meetings with UK trade secretary Jonathan Reynolds.
India currently ranks as the UK’s 11th largest trading partner. According to the UK government, total trade between the two countries reached £42.6 billion in the year ending Q4 2024 — an 8.3% increase over the previous year. Indian exports rose by 10.1% to £25.5 billion, while UK exports to India increased by 5.8%, hitting £17.1 billion.
Further official details of the FTA are expected to be announced soon.
