India UK FTA: India and the United Kingdom signed the landmark Free Trade Agreement (FTA) today. The deal was formalised in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer. Commerce Minister Piyush Goyal also accompanied the PM for the formal signing ceremony. The agreement is expected to boost the UK’s economy by £4.8 billion and raise wages by £2.2 billion every year in the long term. Trade between India and the UK is expected to grow by £25.5 billion annually.
PM Modi has already landed in London where the Indian community was seen giving him a warm welcome. The Prime Minister took to X and said, “This visit will go a long way in advancing the economic partnership between our nations. The focus will be on furthering prosperity, growth and boosting job creation for our people. A strong India-UK friendship is essential for global progress.”
PM Modi and UK Prime Minister Keir Starmer had finalised the India-UK trade deal on May 6, 2025, after last-round of talks in London.
Key takeaways for India vs UK post FTA
- The India-UK Free Trade Agreement (FTA) aims to double trade to $120 billion by 2030. By 2040, both countries hope to increase trade by another $40 billion.
- India will remove import taxes on items like leather, footwear, and clothing, which are major Indian exports, while the UK will reduce tariffs on products such as whisky, gin, soft drinks, cosmetics, lamb, and other farm goods.
- India will allow some UK cars in at just 10% duty — a sharp drop from over 100%. This threatens local manufacturers and millions of jobs.
- UK firms gain easy access to India’s telecom, banking, and insurance sectors. India, however, gets limited visa access in return. Also, UK companies can bid for Indian central govt. tenders, potentially affecting local firms.
- India has agreed to some IP rules beyond WTO norms, which is a first, and risks cheaper medicine access.
- Both sides agreed to use digital systems and paperless trade, making trade quicker and simpler.
- The deal includes mutual recognition of safety and hygiene standards (SPS), ensuring product quality while making exports smoother.
- India didn’t get exemptions from the UK’s future carbon taxes, affecting steel and aluminium exports.
What will get cheaper after India-UK FTA deal is signed?
Clothing and Home Textiles: Indian garments and home textiles will become cheaper in the UK as import duties of 8–12% are removed. This will help exporters in Tiruppur, Surat, and Ludhiana grow.
Jewellery and Leather Goods: Gold and diamond jewellery, along with leather products, will enter the UK duty-free, boosting India’s MSMEs and luxury brands.
Scotch Whisky: India will cut tariffs on Scotch from 150% to 30% over 10 years, making it cheaper for Indian buyers and bars.
Machinery and Auto Parts: Indian-made machines, tools, and car parts will cost less in the UK, helping factories in Pune, Chennai, and Gurgaon.
Professional Services: Relaxed visa rules and recognition of qualifications will allow more Indian engineers, architects, and accountants to work in the UK.
Pharmaceuticals: Indian drugmakers will get faster approvals and easier access to the UK’s healthcare system, especially for generic medicines.
Agricultural Products: Basmati rice, shrimp, tea, and spices will become cheaper in the UK, helping farmers and exporters in Assam, Gujarat, Kerala, and Bengal.
Chemicals and Plastics: Lower duties on chemicals and plastics will boost exports from Gujarat and Maharashtra, with a target to double chemical exports by 2030.
Renewable Energy: The deal will bring more UK investment into Indian solar, hydrogen, and EV projects, cutting costs and encouraging green growth.
Will the FTA harm India in long term? Here’s what GTRI says
GTRI’s report says that India will gain from duty-free access for 44% of its exports like textiles and footwear, and cheaper UK imports like whisky, cosmetics, and cars. However, the deal comes with major concerns. India will cut car import duties from over 100% to 10%, putting its auto industry and millions of jobs at risk. UK firms get wide access to India’s services and government tenders, while India gets only limited visa benefits. India has also agreed to new patent rules, possibly affecting access to affordable medicines. With no carbon tax protection and expected tariff losses of £900 million, India’s long-term interests could suffer.
Follow this space to catch our live coverage on India-UK FTA signing:
India-UK Free Trade Deal News Live: India-UK FTA Impact on agriculture, textile, cars, pharma and more
India-UK Free Trade Deal News Live: M Modi presents 'Ek Ped Maa Ke Naam' to King Charles III for royal estate
Prime Minister Narendra Modi presented a tree sapling as part of his “Ek Ped Maa Ke Naam” environmental initiative to King Charles III during his audience with the monarch at his Sandringham Estate in Norfolk, eastern England, on Thursday.
Modi said both also covered aspects such as Yoga and Ayurveda as well as the India-UK Free Trade Agreement, known as Comprehensive Economic and Trade Agreement (CETA) signed between him and UK Prime Minister Keir Starmer.
“Had a very good meeting with His Majesty King Charles III. We discussed different aspects of India-UK relations, including the ground covered in trade and investment in the wake of CETA and Vision 2035. Other subjects of discussion included education, health and wellness, particularly Yoga and Ayurveda, which are subjects His Majesty is very passionate about. We also talked about environmental protection and sustainability,” ,” PM Modi posted on X.
The sapling he presented to the King will be planted on the estate during planting season in the autumn, Foreign Secretary Vikram Misri told reporters during a Ministry of External Affairs briefing around the Prime Minister's visit.
India-UK Free Trade Deal News Live: Royal family shares glimpse of PM's meeting with King Charles
India-UK Free Trade Deal News Live: Modi gives young cricketers bat signed by Indian team
"India and the UK are connected by a shared passion for cricket. At Chequers, PM Keir Starmer and I interacted with players from Buckinghamshire Street Cricket Hubs. Great to see sport fostering people-to-people ties between our nations. Also gave my young friends a bat signed by the Indian cricket team which won the T20 World Cup," the PM wrote on X.
India-UK Free Trade Deal News Live: PM Modi meets with young cricketers in UK
Prime Minister Narendra Modi met with young cricketers from the UK at Chequers Estate on Thursday evening.
"PM interacted with them and discussed the important role of cricket in bolstering people-to-people ties between the two countries," wrote MEA spokesperson Randhir Jaiswal while sharing photos on X.
India-UK Free Trade Deal News Live: PM Modi shares photos from 'Chai pe charcha' with Starmer
India-UK Free Trade Deal News Live: PM Modi interacts with business leaders in UK
"Interacted with business leaders at Chequers. The signing of the India-UK CETA has opened up new avenues for trade and investment. It marks a pivotal step in strengthening our economic partnership," Prime Minister Narendra Modi wrote on X.
India-UK Free Trade Deal News Live: MoU signed between CBI, UK National Crime Agency
"A memorandum of understanding was signed between the Central Bureau of Investigation of India and the UK National Crime Agency. Both leaders also expressed great happiness at the increasing collaboration in new and emerging technologies between the two countries," said Foreign Secretary Vikram Misri.
The MEA said that the MoU was intended to "combat instances of corruption, serious fraud and organised crime".
India-UK Free Trade Deal News Live: MEA says PM Modi will meet King Charles shortly
Prime Minister Narendra Modi is scheduled to call on King Charles III "in a short while from now" after holding bilateral talks with his British counterpart.
"PM Modi landed in the UK yesterday and received a traditional and warm welcome by the representatives of the Indian community in the UK. Earlier this morning, the Prime Minister was hosted by PM Keir Starmer at the Chequers Estate. The two leaders held restricted and delegation-level talks and had the opportunity to review the entire gamut of issues in the bilateral relationship," added Foreign Secretary Vikram Misri.
India-UK Free Trade Deal News Live: PM Modi says Vision 2035 will...
India-UK Free Trade Deal News Live: PM Modi shares update after 'outstanding' talks with British counterpart
"The talks with PM Keir Starmer were outstanding, particularly in the wake of the successful signing of the Comprehensive Economic and Trade Agreement. In addition to economic cooperation, this agreement sets the stage for boosting shared prosperity," he wrote on X while sharing several pictures.
India-UK Free Trade Deal News Live: FICCI cheers signing of FTA
“The signing of the India–UK Free Trade Agreement marks a key milestone in India’s evolving trade architecture, aligning with its vision of deeper global economic integration. It complements the objectives of Atmanirbhar Bharat by empowering domestic industries to scale globally, engage competitively, and leverage value chains more effectively. FICCI welcomes this development as a step toward a more resilient and opportunity-driven trade ecosystem that benefits both economies and their people," said FICCI President Harsha Vardhan Agarwal.
India-UK Free Trade Deal News Live: UK to import smartphones at zero duty
India's electronics sector has received a major boost, as exports of smartphones, optical fibre cables, and inverters to the United Kingdom will attract zero import duty under the Free Trade Agreement signed on Thursday.
The India-UK FTA opens up export potential for Indian software firms, with the inclusion of IT and IT-enabled services in the list.
"Zero-duty access expected to accelerate exports of electronic products, with smartphones, optical fibre cables, and inverters set to strengthen India's foothold in the UK market," an official source told PTI.
India-UK Free Trade Deal News Live: PM Modi invites Starmer for visit
Prime Minister Narendra Modi invited his British counterpart to visit the country during talks on Thursday. India and the UK signed a "historic" free trade agreement --- with the Indian leader noting that it would greatly “benefit youth, farmers, fishermen and the MSME sector”.
India-UK Free Trade Deal News Live: 'New chapter in business and trade'
Prime Minister Narendra Modi also held a bilateral meeting with UK PM Keir Starmer on Thursday.
"We are meeting for the third time this year. I consider this very significant. UK and India are natural partners. Today marks a historic day in our relations. Our two nations are signing FTA and Double Contribution Convention. This will pave a very strong path for the future generations of India and the UK. This is adding a new chapter in business and trade," he said.
India-UK Free Trade Deal News Live: Goa's feni, Kerala's toddy to get shelf space in British stores
India's unique traditional craft beverages, including Goa's feni, Nashik's artisanal wines, and Kerala's toddy, are set to gain recognition in the UK as the two countries signed the free trade agreement on Thursday. With this, ethnic alchoBev Indian drinks will not only enjoy their traditional Geographical Indication (GI) protection but also gain access to developed markets as the UK, where demand for natural and organic products is on the rise.
A Commerce & Industry ministry official told PTI that the FTA will not only help place traditional Indian craft beverages on the shelf space in the UK, along with Scotch Whisky and others, but also help explore niche channels such as hospitality
"Indian craft drinks like feni from Goa, artisanal wines from Nashik, and toddy from Kerala will now enjoy Geographical Indication (GI) protection and shelf space in high-end UK retail and hospitality chains," the official added.
India-UK Free Trade Deal News Live: Starmer thanks PM Modi for...
"We both know that this is the biggest, most economically significant trade deal that the UK has made since leaving the EU. I think I can say that this is one of the most comprehensive deals that India has ever done. So, thank you, PM, for your leadership and for your pragmatism. I would like to thank everybody who has worked so hard to get this deal over the line," British Prime Minister Keir Starmer said.
India-UK Free Trade Deal News Live: India to push for extradition of fugitives? PM says...
" Regarding the extradition of econonic offenders, our agencies will work with coordination and cooperation," Prime Minster Narendra Modi said during his joint address on Thursday
India-UK Free Trade Deal News Live: FTA a 'big win' for farmers
"This agreement is a big win for farmers, ensuring duty-free exports on nearly 95% of agricultural products, while fisherfolk gain from Zero Duty on 99% of marine exports, boosting their incomes. The deal will also have a transformative impact on manufacturing-intensive sectors like engineering goods, electronics, pharma, chemicals, food processing, and plastics. This agreement will also provide Indian consumers with high-quality goods at competitive prices," explained Union Minister Piyush Goyal.
India-UK Free Trade Deal News Live: Modi thanks Starmer for condemnation of Pahalgam attack, says 'we are united in...'
"We express our gratitude to Prime Minister Starmer and his government for the strong condemnation of the terrorist attack in Pahalgam. We are united in our view that there is no place for double standards in the fight against terrorism. We also agree that forces with extremist ideologies cannot be allowed to misuse Democratic Freedoms," the Prime Minister said.
India-UK Free Trade Deal News Live: India-UK FTA Live: 'Trade deal to benefit youth, farmers, fishermen, and MSME sector'
Prime Minister Narendra Modi lauded the 'historic' trade deal signed on Thursday --- noting that the agreement would "benefit youth, farmers, fishermen and the MSME sector".
"Artisans, weavers, and daily-wage labourers employed in several MSMEs across textiles, leather, footwear, gems & jewellery, toys, and marine products will step into a new phase of prosperity. From village looms to tech labs, this FTA marks a historic leap for women through improved access to finance and deeper integration into global value chains," addedUnion Minister Piyush Goyal .
India-UK Free Trade Deal News Live: Piyush Goyal shares congratulatory message after signing FTA
Union Minister Piyush Goyal was present for the signing of the India-UK Free Trade Agreement on Thursday. He issued a congratulatory message for both countries via social media after the ceremony --- outlining several key components of the new deal.
"Duty-free access for about 99% of Indian exports unlocks nearly $23 billion in opportunities for labour-intensive sectors, marking a new era for inclusive and gender-equitable growth," he noted.
India-UK Free Trade Deal News Live: PM Modi uses cricket metaphor for 'high scoring solid partnership' with UK
"For both of us, Cricket is not just a game, but a passion. And also, a great metaphor for our partnership. There may be 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," Prime Minister Narendra Modi said.
India-UK Free Trade Deal News Live: Rolls-Royce Plc CEO welcomes FTA
“The Free Trade Agreement is a landmark in bilateral cooperation. We welcome the new UK-India roadmap for closer collaboration on defence, technology and innovation. Rolls-Royce is growing its aerospace capabilities in India, and we look forward to working with Indian partners to co-develop power and propulsion technologies for India and the world, building on 60 years of successful technology transfer. This will unlock benefits of job creation, technology development and manufacturing growth," Tufan Erginbilgic said.
India-UK Free Trade Deal News Live: PM Modi condoles Ahmedabad plane crash, hails contributions of Indian-origin Britons
"Among the people who died in the accident in Ahmedabad last month, there were many UK nationals as well. We express our condolences to their families," Prime Minister Narendra Modi 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 contribution is not restricted to just the economy of UK but is also reflected in the culture, sports and public service of the UK," he added.
India-UK Free Trade Deal News Live: PM Modi highlights 'new opportunities' emerging after FTA
"This Agreement is not just an economic agreement but also the plan for a shared prosperity. On one side, 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, for the people of India and industry, products made in UK like medical devices will be available at reasonable and affordable prices.," Prime Minister Narendra Modi noted.
India-UK Free Trade Deal News Live: PM Modi hails 'historic' day in India-UK relations
"Today marks a historic day in our relations. I am delighted that after the hard work of several years, today our two nations have signed the Comprehensive Economic and Trade Agreement," Prime Minister Narendra Modi said.
"It is a deal that will bring huge benefits to both of our countries, boosting wages, raising living standards and putting more money in the pockets of working people. It is good for jobs, it is good for business, cutting tariffs and making trade cheaper, quicker and easier," Keir Starmer said.
A bilateral meeting took place at the historic Hawtry Room earlier today with the two leaders holding a one-on-one discussion to finalise the contours of the pact before signing.
The trade deal, firmed up after three years of negotiations, is expected to ensure comprehensive market access for Indian goods across all sectors, and India will gain from tariff elimination on about 99% of tariff lines (product categories) covering almost 100% of the trade values, according to officials.
In May, India and the UK sealed the FTA that is expected to benefit 99 per cent Indian exports from tariff and will make it easier for British firms to export whisky, cars and other products to India, besides boosting the overall trade basket.
Along with the FTA -- the biggest the UK has done since leaving the European Union -- the two sides also sealed a double contribution convention. It provides for the exemption for employers of Indian workers from paying social security contributions in the UK.
India-UK Free Trade Deal News Live: Agreement signed, documents exchanged say reports
According to multiple reports quoting sources, the India-UK Free Trade Agreement has now been signed. Official confirmation is awaited.
India is the UK's 12th largest trading partner, with bilateral trade standing at over PS 36 billion. The agreement aims to reduce average tariffs on British products such as cars, medical devices, cosmetics, and soft drinks from 15% to 3% --- benefiting Indian consumers. At the same time, it will ease market entry for Indian exporters, further increasing the UK's current imports of PS11 billion worth of Indian goods.