India & UK Seal Landmark Trade Deal

India and UK Seals Landmark Trade Deal

India and the UK are scheduled to sign a comprehensive free trade agreement (FTA) on July 24, 2025, during Indian Prime Minister Narendra Modi's trip to London. Concluded after more than three years of talks, this major pact seeks to abolish taxes on 99% of Indian exports to the UK and lower tariffs on 90% of UK exports to India. With a goal to double India-UK trade from $60 billion to $120 billion by 2030, the agreement is expected to raise UK GDP by about £4. 8 billion per year and boost bilateral trade by around £25. 5 billion yearly.

The FTA gives considerable advantages in many different fields. Indian exports of textiles, leather, footwear, and jewelry will have better market access. Conversely, with whisky tariffs decreasing from 150% to 40% over ten years and auto tariffs reaching 10% under a quota system, UK exports like whiskey, vehicles, medical equipment, and machinery will experience large tariff decreases. For Indian employees in the UK, the agreement also enables professional mobility by providing better visa processes and a three-year exemption from social security payments.

Though the deal covers a wide range, it has strategic exemptions for delicate Indian industries including certain agricultural commodities, mobile phones, diamonds, and petroleum. Following the signing, the FTA will be legally vetted and UK legislative approved; complete execution is expected in a year. For both countries, this historic agreement is vital as it offers a model for India's future FTAs and strengthens the UK's post-Brexit trade goals.