July 25, 2025
NEW DELHI – India and the United Kingdom on Thursday signed a landmark Free Trade Agreement (FTA) that aims to boost bilateral trade and provide better market access to businesses in both countries. The agreement was signed during Prime Minister Narendra Modi’s official visit to the UK.
Modi met his British counterpart, Prime Minister Keir Starmer, at his official residence in London before the two leaders addressed a joint press conference to announce the landmark trade agreement.
“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,” Starmer said at the press briefing.
Prime Minister Modi called it a historic day in the bilateral relations between India and the UK. “I am delighted that after the hard work of several years, our two nations have signed the Comprehensive Economic and Trade Agreement,” he said.
The Prime Minister stated that the free trade pact will create new opportunities for Indian agricultural produce and the processed food industry in the UK market.
“On one hand, Indian textiles, footwear, gems and jewelry, seafood, and engineering goods will gain better market access in the UK. New opportunities will be created in the UK market for India’s agricultural produce and processed food industry. This agreement will prove particularly beneficial for India’s youth, farmers, fishermen, and MSME sector. On the other hand, for the people and industry of India, products made in the UK – such as medical devices and aerospace parts – will be available at accessible and affordable rates,” said Modi.
He further added, “To give new momentum and energy to our comprehensive strategic partnership in the next decade, today we will also discuss Vision 2035. It will be a roadmap for a strong, reliable, and ambitious partnership in the fields of technology, defense, climate, education, and people-to-people connections.”
The FTA is expected to unlock significant export opportunities for India, particularly in labour-intensive sectors such as textiles, leather, marine products, gems and jewellery, toys, and sports goods. Key industries such as auto components, engineering goods, and organic chemicals are also expected to benefit substantially.
According to officials, the agreement aligns with India’s ongoing domestic reforms and efforts to modernize regulatory frameworks. It is expected to improve the ease of doing business and promote greater transparency in trade practices
Hours before signing the free trade agreement with India, Starmer, who is facing criticism from the opposition over the deal, defended the trade agreement, saying it will create thousands of jobs for Britons and unlock new opportunities for businesses.
“A landmark deal with India means jobs, investment, and growth here in the UK. It creates thousands of British jobs, unlocks new opportunities for businesses and puts money in the pockets of working people. That’s our Plan for Change in action,” the British PM said in a post on X.