In a landmark move set to redefine bilateral ties, India and the United Kingdom signed the long-awaited Free Trade Agreement (FTA) on Thursday, July 24, witnessed by Prime Ministers Narendra Modi and Keir Starmer. The agreement promises to open new avenues not just for trade in goods and services, but also for educational collaboration and employment generation across both nations.
Speaking at the signing ceremony, Prime Minister Narendra Modi emphasized the long-term strategic vision behind the partnership. He said, “To give new momentum and energy to our comprehensive strategic partnership in the next decade, we are also discussing Vision 2035 today. This will be a roadmap for a strong, reliable, and ambitious partnership in technology, defense, climate, education, and people-to-people connectivity.”
UK Prime Minister Keir Starmer highlighted the socioeconomic impact of the deal, stating, “A landmark deal with India means jobs, investment, and growth here in the UK. It creates thousands of British jobs, unlocks new opportunities for businesses, and puts money in the pockets of working people.”
The FTA is closely aligned with India’s Viksit Bharat 2047 vision and supports the shared goal of enhancing bilateral trade to USD 120 billion by 2030. It is expected to pave the way for greater student mobility, mutual recognition of qualifications, and enhanced academic partnerships between Indian and UK institutions.
One of the core highlights of the FTA is its strong focus on job creation and skill exchange. By reducing tariffs on key sectors such as textiles, engineering goods, auto components, IT services, pharmaceuticals, and education technology, the agreement is projected to generate thousands of direct and indirect jobs in both countries.
British companies will gain smoother market access for goods like medical devices, cosmetics, and electric vehicles, while Indian exporters will benefit from tariff eliminations on nearly 99% of UK tariff lines. This positions India’s skilled workforce to expand into UK markets in healthcare, engineering, IT, and green technologies.
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