Modi, Starmer Sign India–UK FTA To Boost Annual Trade By USD 34 Bn

New Delhi, July 24 (KNN) India and the United Kingdom on Thursday formally signed a Free Trade Agreement (FTA), marking a major milestone in bilateral relations and economic cooperation. 

The signing ceremony took place at Chequers, the official country residence of the British Prime Minister, in the presence of Indian Prime Minister Modi and UK Prime Minister Keir Starmer.

Described as the most significant trade deal for the UK post-Brexit and the most comprehensive FTA ever signed by India, the agreement is expected to boost bilateral trade by USD 34 billion annually. 

The pact follows years of complex negotiations and is accompanied by the launch of the UK-India Vision 2035, a strategic roadmap for enhanced cooperation beyond trade.

The India–UK Free Trade Agreement (FTA) includes several key provisions aimed at deepening economic ties between the two countries. 

One of the central features is the phased reduction of tariffs by India on a range of high-value British goods. 

For example, whisky import duties will be gradually reduced from 150 percent to 40 percent over a 10-year period, while car import duties will be brought down to 10 percent from over 100 percent under a quota system. 

Tariff cuts will also apply to other UK exports such as gin, cosmetics, and medical devices.

On the other side, the United Kingdom has agreed to provide zero-duty access to 99 percent of Indian exports, covering vital sectors like textiles, leather goods, marine products, gems and jewellery, toys, and sports equipment—industries that form a significant part of India's export portfolio.

The agreement also promotes regulatory alignment through the harmonisation of sanitary and phytosanitary standards. 

This will help streamline export health certification processes and reduce the number of Indian agricultural products being rejected at UK borders.

To support Indian businesses and professionals operating in the UK, the FTA includes a provision for social security exemptions for up to three years, thereby easing regulatory compliance and lowering operational costs. 

Furthermore, Indian companies will gain access to the UK’s public procurement market in sectors such as transport, energy, and healthcare.

In addition to the trade agreement, the two countries have launched the UK-India Vision 2035, outlining a broader framework for long-term bilateral cooperation. 

This vision includes the creation of a new industrial partnership for joint defence manufacturing, as well as joint initiatives in renewable energy, climate resilience, and green technology. 

The two sides also plan to enhance academic and research collaborations, with mutual recognition of qualifications and expanded student exchange programmes. 

In the area of security, the vision calls for deeper cooperation in cybersecurity, border management, and counter-terrorism.

(KNN Bureau)