Union Commerce and Industry Minister Piyush Goyal shakes hands with UK Secretary of State for Business and Trade Jonathan Reynolds during the signing ceremony as India and the UK formally conclude the Comprehensive Economic and Trade Agreement (CETA), in Buckinghamshire on Thursday, July 24, 2025. (Photo: IANS/PMO)
New Delhi, July 24 (IANS) Prime Minister Narendra Modi and his British counterpart Keir Starmer signed the eagerly-anticipated Free Trade Agreement (FTA) on Thursday, marking a significant milestone in the trade and economic relations between India and the UK.
As part of the historic pact, the UK will lower duties on 99 per cent of Indian exports, and India will lower tariffs on 90 per cent of UK goods, drastically reducing tariff lines and sector-specific regulatory procedures.
The agreement is expected to lower the cost of imported goods for Indian consumers, including luxury cars, cosmetics, medical devices, gin, and Scotch whisky. In the next two years, it is anticipated that India's leather industry will increase its market share in the UK by 5 per cent.
Organised by the Confederation of Indian Industry (CII), 16 key business leaders from the Indian industry, led by Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises and Co-Chair of the India-UK CEO Forum, were part of PM Modi's delegation.
The Industry leaders welcomed the trade pact between the two nations, terming the deal historic and a game-changer for both nations.
“Indian industry across all sectors welcomes the India-UK FTA with great optimism. This agreement establishes a modern, forward-looking partnership that will stimulate innovation, ease market access, and foster investment," said Mittal.
Businesses in India as well as the UK stand to gain tremendously, as it lays the groundwork for scaling up bilateral cooperation across key growth sectors, he added.
Dr. Anish Shah, Group CEO and MD, Mahindra Group, believes that the landmark trade agreement between India and the UK marks a transformative moment in the global economic landscape and It is a testament to the growing stature of India as a trusted partner and innovation powerhouse in the global order.
"It’s not just a win for trade, but a blueprint for a modern, values-led partnership that puts innovation, sustainability, and inclusive growth at the heart of global collaboration," Shah said.
Kirit Bhansali, Chairman, Gem and Jewellery Export Promotion Council, said that this landmark accord unlocks exciting new opportunities for the gem and jewellery sector.
"Currently, exports to the UK stand at $941 million; with the duty concessions in place, this figure is poised to surge to $2.5 billion within the next three years, elevating overall bilateral trade in our sector to an estimated $7 billion," said Bhansali.
India-UK FTA a landmark moment for bilateral economic ties
The signing of the India-UK Free Trade Agreement (FTA) is a landmark moment for the bilateral economic relations, industry veterans said on Thursday.
Prashant Ruia, Group Chief Executive, Essar, said this is a watershed moment in India–UK economic relations.
“The signing of the Free Trade Agreement (FTA) under the visionary leadership of Prime Minister Shri Narendra Modiji, marks the beginning of a new era of strategic collaboration between the two nations. By lowering tariffs, easing market access, and deepening services and investment flows, this landmark deal unlocks immense potential for both economies,” Ruia emphasised.
The FTA has opened up preferential access for India's farmers to the UK’s $37.5 billion agricultural market while India fully protects its sensitive sectors like dairy, vegetables, apples, cooking oils and oats, according to an official statement. There is also a massive gain for rural India and exporters with zero duty on processed foods compared with up to 70 per cent earlier.
“The signing of the India–UK Free Trade Agreement is a landmark moment for Indian industry. We commend both governments for finalising a deal that promises to catalyse bilateral trade, enhance competitiveness of Indian SMEs, and open new doors for industries in manufacturing, services, and technology sectors. The agreement is a testimony to the strategic depth that will lead to doubling of bilateral trade to over $120 billion by 2030 with UK,” said Hemant, Jain, President, PHDCCI.
The trade pact also gives a big catch to Indian fishermen as the $5.4 billion UK market opens up for marine exports with the UK’s import duty on marine products to come down to zero from up to 20 per cent earlier. The free trade agreement opens up new opportunities for India’s youth who will benefit from more jobs and higher wages in services sectors like IT, finance and consultancy.
India-UK FTA not just economic partnership but blueprint for shared prosperity: PM Modi
Terming the signing of the Free Trade Agreement (FTA) between India and the UK as "historic", Prime Minister Narendra Modi on Thursday said that the pact is not just economic partnership but also a blueprint for shared prosperity. He stated that India and the UK have also reached a consensus on double contribution convention.
Making a press statement alongside his UK counterpart Keir Starmer, PM Modi said, "Today is a historic day in our relations. I am happy that after many years of hard work, the Comprehensive Economic and Trade Agreement has been concluded between the two countries. This Agreement does not merely pave way for economic partnership but is also a blueprint for our shared prosperity."
"Indian textile, footwear, gems and jewellery, seafood and engineering goods will get better market access in the UK. New opportunities will emerge in the UK market for India's agricultural produce and processed food industry. This agreement will especially benefit Indian youth, farmers, fishermen and MSME sector. On the other hand, people and the industries in India will be able to access products made in the UK such as medical devices, aerospace parts at affordable and reasonable prices," he added.
Earlier in the day, PM Modi and his British counterpart Starmer signed the much-awaited FTA, which will boost annual bilateral trade by about USD 34 billion.
PM Modi thanked Starmer for the warm welcome in the UK and invited him to visit India. He said that the agreements reached between India and the UK will provide support to global stability and prosperity.
"Prime Minister, once again, I express my gratitude for your warm hospitality. I also extend an invitation for you to visit India and hope that we will have the opportunity to welcome you in India soon," he said.
PM Modi also announced the launch of India-UK Vision 2035. He said, "Vision 2035 is a roadmap that will form the basis of a strong, ambitious partnership in the fields of technology, defence, climate, education, and people-to-people connect."
He said, "Along with this agreement, we have also reached a consensus on the double contribution convention. This will inject new energy into the service sectors of both countries, especially in technology and finance. It will promote ease of doing business, reduce the cost of doing business, and increase confidence in doing business. Additionally, UK's economy would benefit from India's skilled talent. These agreements will enhance investments and generate new employment opportunities in both countries. Moreover, as agreements reached between two democracies and two of the world's major economies, they will lend support to global stability and global prosperity."
Stressing that India and UK will continue to strengthen technology security initiative, PM Modi said, "Defence industrial roadmap has also been drawn up for partnership in defence and security. Work will continue on strengthening our technology security initiative. It is our commitment that from AI to critical minerals, from semi-conductors to cybersecurity, we shall create the future together."
Speaking about the cooperation between two nations in the education sector, PM Modi announced that six universities of the UK will open campuses in India and recalled the inauguration of South Hampton University campus in Gurugram last week.
Highlighting the role of Indian diaspora in strengthening India's ties with the UK, he said, "People of Indian origin who live in the UK act as a living bridge in our relations. They did not just bring curry from India, but also creativity, commitment and character. Their immense contributions are not just limited to UK's prosperous economy but are also reflected in the culture, sports and public service of the UK."
He also mentioned how cricket is passion for both nations and expressed India's commitment to building a high scoring solid partnership with the UK.
"When India and the UK meet — and that too during a Test series — it is only natural to mention cricket. For both of us, cricket is not just a game, but a passion, and also a great metaphor for our partnership. There maybe a swing and a miss at times but we always play with a straight bat. We are committed to building a high scoring solid partnership. The agreements concluded today and Vision 2035 are milestones which advance this very spirit," he said.
Offering condolences to the families of the victims of the Air India plane crash in Ahmedabad, he said, “Among the people who died in the accident in Ahmedabad last month, there were several sisters and brothers from the UK. We express our condolences to the families.”
