UK and India Conclude Free Trade Agreement

UK and India Conclude Free Trade Agreement

The United Kingdom and India signed a Free Trade Agreement on May 6, 2025, marking a pivotal moment in their economic relations.

This agreement is significant for addressing global trade concerns and enhancing economic ties amid US-imposed tariffs.

UK-India Free Trade Agreement Overview

The UK-India Free Trade Agreement represents an ambitious collaboration aimed at fostering economic growth and increasing bilateral trade. Concluded after three years of discussions, the deal responds to recent trade tariffs imposed by the United States.

The agreement was finalized through the efforts of UK Prime Minister Keir Starmer and Indian Prime Minister Narendra Modi, who described it as “mutually beneficial”. Business and Trade Secretary Jonathan Reynolds and Commerce Minister Piyush Goyal were key figures in the negotiations.

Narendra Modi, Prime Minister, India, – “This ambitious and mutually beneficial Free Trade Agreement will catalyse trade, investment, growth, job creation, and innovation in both our economies.” source

Impact Across Industries

For industries, the deal promises to halve India’s tariffs on products like whiskey while enhancing market access for professional services. The agreement also encourages international market listings for Indian companies, which may include the London Stock Exchange .

Financially, the projected impact is substantial, with expectations of increased UK wages and boosted GDP. The political aspect of the agreement underscores strengthening ties between two of the largest global economies, reinforcing the UK as a major trade partner.

Future Opportunities and Developments

This development opens possibilities for regulatory advancements and increased innovation. The agreement sets a new benchmark in trade deals with India and aims to double goods trade over the next decade, benefiting both nations significantly.