India and the United Kingdom have signed a landmark Free Trade Agreement (FTA) aimed at boosting bilateral trade and investment, eliminating tariffs on a wide range of goods, and enhancing cooperation across key sectors. Business leaders across India have hailed the deal as a “transformative moment” in the global economic landscape.
The agreement, signed by Commerce Minister Piyush Goyal and UK Trade Secretary Jonathan Reynolds in the presence of Prime Ministers Narendra Modi and Keir Starmer, includes the ambitious ‘Vision 2035’ roadmap for strategic collaboration in defence, clean energy, technology, and skilled migration.
The FTA grants Indian exporters near-complete tariff elimination, covering 99% of tariff lines and nearly 100% of trade value. It opens up the UK market for Indian goods such as textiles, footwear, seafood, jewellery, engineering products, and agricultural items. At the same time, UK goods like medical devices, aerospace components, and Scotch whisky will become more accessible in India.
Industry leaders praised the deal’s potential to create jobs, support MSMEs, and drive sustainable growth. Anil Agarwal of Vedanta called it a “win-win,” while Mahindra Group’s Anish Shah described it as a blueprint for a modern, innovation-driven partnership. Leaders from Piramal, Hinduja Group, TVS Motor, and Deloitte also highlighted the benefits for sectors like green energy, digital trade, consumer goods, and pharmaceuticals.
The agreement is expected to increase annual bilateral trade by over $34 billion. Britain’s Prime Minister Keir Starmer called it the UK’s most significant trade pact post-Brexit, projecting job creation and reduced consumer prices across Britain.
Both nations have also agreed to implement a Double Contribution Convention, allowing Indian employers in the UK to be exempt from social security payments for up to three years, effective alongside the FTA.
