Daijiworld Media Network - London

London, Jul 24: In a historic breakthrough, India and the United Kingdom on Thursday sealed a long-anticipated Free Trade Agreement (FTA), expected to add nearly $34 billion to annual bilateral trade and open up sweeping new opportunities for businesses and consumers on both sides.

Signed by Prime Minister Narendra Modi and British Prime Minister Keir Starmer, the agreement dramatically slashes tariffs and regulatory hurdles across key sectors, cementing a major milestone in India-UK economic relations.

Under the terms of the deal, India will remove or reduce tariffs on 90% of UK goods, while the UK will ease duties on 99% of Indian exports. The FTA promises wide-reaching benefits, including greater market access, smoother customs procedures, and enhanced investor confidence.

Prime Minister Starmer, hailing the pact on social media, said, “Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country.”

Major Sectoral Gains

The agreement is expected to have tangible consumer benefits: Scotch whisky, gin, luxury cars, cosmetics, and medical equipment will become significantly more affordable in the Indian market due to reduced import tariffs.

For India, the deal offers tariff parity on agricultural exports with key European players, strengthening its presence in high-demand markets. The removal of duties on textiles and leather is expected to improve India’s edge over regional competitors like Bangladesh and Cambodia. The leather sector alone could gain an additional 5% market share in the UK within two years.

Indian electronics, engineering goods, and gems and jewellery exporters are also likely to benefit. Engineering and electronics exports are projected to double by 2030, and jewellery exports — currently at $941 million — could also double in just three years.

British officials estimate that UK exports to India will grow by nearly 60% in the long term, as more small and medium enterprises tap into the Indian market.

High-Level Engagements

The agreement was signed during PM Modi’s ongoing UK visit, his fourth since taking office. The two leaders met at the Chequers Estate, the British Prime Minister’s countryside retreat, where they also held extensive discussions on the broader India-UK Comprehensive Strategic Partnership (CSP).

Talks included cooperation on trade and investment, technology and innovation, defence and security, climate action, education, health, and people-to-people ties. The two sides also exchanged views on pressing regional and global issues.

Later today, Prime Minister Modi is scheduled to call on King Charles III, further underscoring the diplomatic significance of his visit.

With the FTA finally signed after years of negotiation, both nations are now set to enter a new chapter in their economic relationship — one built on shared prosperity, mutual trust, and deeper integration into the global trade framework.