- PM Modi and PM Starmer formalize a historic Free Trade Agreement worth £6 billion.
- The FTA aims to double bilateral trade to $120 billion by 2030.
- Tariff cuts and expanded market access expected to boost jobs and business in both countries.
In a historic move to deepen bilateral ties and economic collaboration, Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer signed a landmark Free Trade Agreement (FTA) on July 24, 2025.
The agreement also establishes a forward-looking framework for cooperation on technology, green energy, defence, and migration. The two leaders unveiled a shared strategic roadmap—UK-India Vision 2035—which outlines joint goals in innovation, investment, and sustainable development.
New Trade Horizons: India and UK Seal Game-Changing £6 Billion Agreement
The FTA is expected to catalyse substantial employment opportunities in the UK, especially across aerospace, technology, and manufacturing sectors. British companies will gain improved access to India’s vast consumer market, where the average tariff on imported British goods will drop from 15% to just 3%. Simultaneously, the UK promises smoother visa pathways for Indian professionals, students, and businesspeople—bolstering people-to-people ties.
India’s export ecosystem stands to benefit from this trade pact with streamlined regulatory access and tariff elimination across nearly 100% of trade values. Products like textiles, jewellery, pharmaceuticals, and electronics will gain easier and more competitive entry into the British market. Indian MSMEs, in particular, are expected to thrive under these revised trade conditions.
Beyond trade, the leaders discussed migration, defence cooperation, and the shared challenge of climate change. The agreement includes provisions for mutual recognition of professional qualifications, climate financing collaborations, and a joint effort to address illegal migration—reflecting a holistic, values-driven partnership.
Following the UK visit, PM Modi is set to travel to the Maldives, marking an important regional outreach amid strained ties since President Mohamed Muizzu’s rise to power. The Maldives stop, from July 25–26, signals India’s commitment to rebuilding strategic influence in the Indian Ocean region while balancing global engagements like the UK FTA.
The India-UK FTA is more than a trade agreement—it is a strategic commitment to shared prosperity, innovation, and future-ready cooperation in a shifting global order.
“Economic growth and diplomacy go hand in hand; partnerships like these make nations stronger together.” — Keir Starmer
