On July 24, 2025, Prime Minister Narendra Modi of India and UK Prime Minister Keir Starmer marked a pivotal moment in bilateral relations with the signing of the long-anticipated India-UK Free Trade Agreement (FTA) and the Double Contribution Convention in London.

This significant step comes during PM Modi’s two-day official visit and underscores the commitment of both nations to deepen economic cooperation and chart a new future for trade and strategic collaboration.

Key Features of The India-UK Free Trade Agreement

The FTA aims to substantially enhance the movement of goods and services between India and the UK. It is especially notable for providing unprecedented market access and eliminating trade barriers:

Zero-Duty Access: Indian goods will receive zero-duty access on 99% of tariff lines, effectively covering nearly the entire value of bilateral trade. This opens UK markets to Indian exporters at an unprecedented scale, expected to catalyse vast export opportunities.

Target Sectors: The agreement heavily favours labour-intensive industries, including textiles, leather, footwear, gems and jewellery, engineering goods, marine products, and toys. Sectors such as agricultural products and processed foods also stand to benefit, promising direct advantages for Indian farmers, women, youth, fishermen, and Micro, Small and Medium Enterprises (MSMEs).

Enhanced Market Access: Indian textiles, footwear, gems and jewellery, and engineering goods now have greater entry into UK markets. This broadens the scope for Indian artisans and small enterprises, fostering employment and entrepreneurial growth.

Ease of Doing Business: The FTA is designed to simplify trade processes, reduce costs, and build greater business confidence, laying the foundation for more robust investment linkages.

Broader Strategic Initiatives: Vision 2035

Alongside the trade agreement, both countries unveiled Vision 2035, a strategic roadmap aiming to reinforce the Comprehensive Strategic Partnership in several critical domains:

Defence Cooperation
Education Exchange
Semiconductors and Technology
Sustainable Development
People-To-People Ties

This vision is intended to nurture innovation, bilateral learning, and sustainable progress, strengthening both countries’ positions on the global stage.

Prime Minister Modi also acknowledged the UK’s solidarity in condemning the April 22 Pahalgam terror attack and highlighted the leaders’ shared stance on countering extremist ideologies. He stressed the need to safeguard democratic freedoms from misuse and reaffirmed the two countries' resolve to hold those undermining democratic processes accountable.

Economic And Societal Impact

The FTA’s focus on labour-intensive and value-added sectors is projected to:

Generate large-scale employment in India
Empower women-led enterprises and the MSME sector
Promote the inclusion of artisans, rural producers, and marginalised groups into the global economic mainstream

By committing to policy frameworks that foster enterprise, reduce costs, and boost investor confidence, the India-UK partnership is set to unlock substantial mutual benefits for years to come.

The signing of the India-UK FTA and the introduction of Vision 2035 represent not just a landmark in economic diplomacy but a transformational leap in the bilateral partnership, promising profound and lasting impact for businesses, workers, and communities across both nations.

Based On ANI Report