India UK trade deal updates: FTA game changer for trade, investment, services, says Piyush Goyal

The India-UK Free Trade Agreement (FTA) is truly a game changer in trade, investment and services sectors, Commerce and Industry Minister Piyush Goyal said on Thursday.

The minister said it was “remarkable” that a journey which started over two decades ago culminated with a historic prime ministerial visit and in a very “fair, equitable and balanced agreement” that ensures the possibility to double India-UK trade to $120 billion in the next five years.

“Truly this is going to be a game changer, in trade, in investments, in the services sector and help both India and the UK grow and our people benefit,” Goyal told PTI soon after signing the agreement with his UK counterpart Jonathan Reynolds, witnessed by Prime Ministers Narendra Modi and Keir Starmer at Chequers in Buckinghamshire.

“Our farmers will get a lot of opportunities, because we can process those farm products and market them in the UK. Our MSME sector will get a plethora of opportunities in aircraft parts and auto components, various engineering products. Our textiles will see a massive spurt in demand, because now on a competitive basis, we will be right on top with zero duties,” he said.

The UK has restored its international standing after years of “performative” politics under successive Conservative governments, Labour Prime Minister Keir Starmer said in an interview after sealing a long-sought trade deal with India on Thursday.

The trade deal — the biggest struck by Britain since Brexit — will cut the vast majority of India’s tariff lines for the UK, helping exports from Scotch whisky to cars. But speaking at his Chequers country retreat after meeting with Indian Premier Narendra Modi, Starmer said the agreement didn’t mark the limit of the UK’s ambition, and would provide a baseline of cooperation to build on for the two countries.

“We have re-established the place and position of the UK on the world stage,” Starmer told Bloomberg in his only interview with a major publication to mark crystallization of the pact, referring also to increased cooperation with the European Union and a trade pact with the US. Now, “we’re seen as a country which other countries want to be working with and delivering with.”

Prime Minister Narendra Modi met King Charles at Sandringham House in UK, the official handle of The Royal Family confirmed. "This afternoon, The King received the Prime Minister of the Republic of India, @NarendraModi at Sandringham House," the X post said.

"During their time together, His Majesty was given a tree to be planted this Autumn, inspired by the environmental initiative launched by the Prime Minister, “Ek Ped Maa Ke Naam”, which encourages people to plant a tree in tribute to their mothers" the X post added. Read more

The India-Uk trade deal will pave the way for collaborations in bulk drug imports, contract research and manufacturing segment, and bolster joint research, Pharmexcil said on Thursday.

In a statement, Pharmaceuticals Export Promotion Council of India (Pharmexcil) Chairman Namit Joshi said the India-UK Free Trade Agreement (FTA) marks a pivotal milestone in economic cooperation, particularly in the pharmaceutical sector.

India has opened key segments of its services sector to British firms, granting access in areas, such as accounting, auditing, financial services, telecom and auxiliary air transport, think tank GTRI said on Thursday.

However, all key areas of India's interest like IT, business services such as management consultancy, advisory, professional including accountancy, engineering, telecom, financial, education and health are covered in the pact.

It said the UK companies can now offer telecom, construction, and related services in India without needing to establish a local presence, and they are entitled to national treatment, meaning they will be treated on par with Indian firms.

India also agreed to recognise UK professional qualifications in select fields like law and accounting (though legal services remain closed), the Global Trade Research Initiative (GTRI) said.

Prime Minister Narendra Modi on July 24 interacted with business leaders in the UK after signing the trade deal with British counterpart Keir Starmer. "Interacted with business leaders at Chequers. The signing of the India-UK CETA has opened up new avenues for trade and investment. It marks a pivotal step in strengthening our economic partnership," he said in a post on X.

India’s agricultural exports are set to receive a substantial boost following the signing of the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom on July 24, which provides duty-free access to 95 percent of Indian farm export tariff lines. The free trade agreement is projected to raise India’s agri-exports by over 20 percent over the next three years, according to official estimates.

Tariff lines refer to specific product categories listed in customs schedules for taxation. Read more here

India UK Trade Deal Live: Commerce minister Piyush Goyal highlights how states tend to benefit from the FTA

Commerce minister Piyush Goyal took to X and highlighted how different states will benefit from the India-UK free trade agreement. "UK rolls out the red carpet for 'Made In India'," he captioned his post.

UK Prime Minister Keir Starmer said that the "landmark trade deal with India is a major win for Britain".

"This is about putting more money in the pockets of hardworking Brits and helping families with the cost of living," he said.

-Speaking at a briefing, foreign secretary Vikram Misri said that the highlight from PM Modi's visit was the signing of the historic India-UK Comprehensive Economic and Trade Agreement.

-This landmark agreement will increase trade and investment and economic cooperation between the two countries by lowering tariffs in key sectors, he said.

-It will also strengthen innovation and technology collaboration. The two sides have also agreed to negotiate a Double Contribution Convention (DCC), which will enter into force along with the FTA, said Misri.

The India-UK FTA is more than a trade agreement – it’s a catalyst for job creation, youth empowerment, and building a future-ready workforce, said Ajay Piramal, Chairman and Executive Director at Piramal Enterprises.

"For the Indian industry, it represents a meaningful step toward inclusive, sustainable economic growth with global partnerships at its core," he said.

On signing of the India-UK FTA, Union Home Minister Amit Shah said Bharat sets another landmark in global trade.

"This treaty stands out as Modi Ji's people-centric trade diplomacy, heralding a new era of prosperity for our farmers by waiving duties on 95% of agricultural exports and benefiting our fishers with zero duty on 99% of marine exports. Boosting the Make in India pledge and globalizing our local products by opening wider markets for our artisans, weavers, textile, leather, footwear, gems and jewelry, and toys, the agreement elevates their potential to a whole new height," he wrote on X.

Anand Ramanathan, partner, consumer products and retail sector leader, Deloitte India said that the India-UK FTA is poised to unlock significant opportunities across key consumer sectors.

In alcobev, the biggest beneficiary will be UK-based Scotch brands, with high import tariffs seeing a sharp reduction.

Given India’s evolved whisky-drinking market, this will encourage both established players and new entrants to expand their global portfolio offerings here. The cosmetics sector too will see a boost, particularly with the harmonisation of standards enabling smoother market access, he said.

In apparel and textiles, the tariff cuts will enable UK premium and luxury fashion brands to price more competitively, making India a highly attractive retail market.

"We can expect to see more direct entries, local partnerships, and deeper penetration across Indian cities through both offline and online retail channels. Moreover, existing players will have a head-start in capitalising on the relaxed norms. Overall, the FTA will catalyse cross-border innovation and product flows not just in B2C segments, but also in food services and wellness categories, offering consumers on both sides greater variety, value, and access to premium global experiences," said Ramanathan.

Prashant Ruia, Group Chief Executive, Essar Group, said that the signing of the India-UK free trade agreement marks a watershed moment in the relations of the two nations.

The signing of the Free Trade Agreement under the visionary leadership of Prime Minister Narendra Modi marks the beginning of a new era of strategic collaboration between the two nations, Ruia said, adding that by lowering tariffs, easing market access, and deepening services and investment flows, this landmark deal unlocks immense potential for both economies.

The India-UK trade deal is expected to usher in a new era of economic cooperation, foster greater market access, technology partnerships, and value chain integration between the Indian and British automotive industries, the Automotive Component Manufacturers Association of India (ACMA) said on Thursday.

The pact, officially called the Comprehensive Economic and Trade Agreement (CETA), was signed in London on Thursday in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer.

"The CETA is expected to benefit the Indian auto component sector through enhanced opportunities for exports, streamlined regulatory processes, particularly in key areas such as electric mobility, precision engineering, and lightweight materials," ACMA President Shradha Suri Marwah said in a statement.

Processed foods along with marine and animal products are among the top gainers in the Comprehensive Economic and Trade Agreement (CETA) signed between India and the United Kingdom (UK) on July 24, with tariffs on import of these items in UK slashed to zero from up to 70% and 20%, respectively. Read more here

Uttar Pradesh chief minister Yogi Adityanath said the signing of the historic India-UK free trade agreement marks a transformative milestone in New India's journey.

With approximately 99% of Indian exports gaining duty-free access to the UK, this landmark agreement will empower "our farmers, MSMEs and exporters, boost manufacturing and unlock unprecedented growth across key sectors", he said.

Mahindra Group CEO and MD Anish Shah said that the landmark trade agreement between India and the UK marks a transformative moment in the global economic landscape. "It's not just a win for trade, but a blueprint for a modern, values-led partnership that puts innovation, sustainability, and inclusive growth at the heart of global collaboration," he was quoted by PTI.

This deal is also a testament to the growing stature of India as a trusted partner and innovation powerhouse in the global order, Shah said.

-Prime Minister Narendra Modi said that the signing of the Comprehensive Economic and Trade Agreement (CETA) between India and UK reflects "our shared commitment to enhancing trade, driving inclusive growth and creating opportunities for farmers, women, youth, MSMEs, and professionals."

-Labour-intensive sectors such as textiles, leather & footwear, marine, gems & jewellery, organic chemicals, plastics, auto parts, artisanal products and services are poised for strong growth. This will ensure further acceleration of India’s journey towards becoming a global manufacturing hub, he wrote on social media platform X.

-"India-UK CETA will add momentum to the ‘Make in India’ led growth and export promotion. This agreement will also provide Indian consumers with high-quality goods at competitive prices. The future indeed holds the promise of greater prosperity and deeper ties between our nations!" the Prime Minister wrote.

-Union commerce minister Piyush Goyal has said that the India-UK free trade agreement is a big win for farmers, ensuring duty-free exports on nearly 95 per cent of agricultural products, while fisherfolk gain from zero duty on 99 per cent of marine exports, boosting their incomes.

-Duty-free access for about 99 per cent of Indian exports unlocks nearly $23 billion in opportunities for labour-intensive sectors, marking a new era for inclusive and gender-equitable growth, he said.

-Artisans, weavers, and daily-wage labourers employed in several MSMEs across textiles, leather, footwear, gems and jewellery, toys, and marine products will step into a new phase of prosperity. From village looms to tech labs, this FTA marks a historic leap for women through improved access to finance and deeper integration into global value chains, said Goyal.

-The deal will also have a transformative impact on manufacturing-intensive sectors like engineering goods, electronics, pharma, chemicals, food processing, and plastics. This agreement will also provide Indian consumers high quality goods at competitive prices.

-India’s talent in IT, services, and education will gain from easier access to the UK’s high-value markets. The three-year exemption from social security contributions in UK as part of the Double Contribution Convention is a significant breakthrough for Indian workers and their employers. "Chefs, yoga instructors, musicians and business visitors will benefit, advancing our vision to be a global talent hub," Goyal wrote.

Sudarshan Venu, Managing Director, TVS Motor Company said, that the signing of the India-UK Free Trade Agreement is a pivotal moment—it opens new frontiers for Indian companies to take ‘Make in India’ to the world.

"We are particularly excited given the launch of new Norton vehicles this year, which will benefit from the strengthening of trade links between India and the UK. It energises our global ambitions and strengthens our resolve to build world-class products and brands," said Venu, adding that the company is deeply inspired by Prime Minister Narendra Modi’s vision of Viksit Bharat and his unwavering commitment to making India a global manufacturing and design powerhouse.

“The Free Trade Agreement is a landmark in bilateral cooperation. We welcome the new UK-India roadmap for closer collaboration on defence, technology and innovation. Rolls-Royce is growing its aerospace capabilities in India, and we look forward to working with Indian partners to co-develop power and propulsion technologies for India and the world, building on 60 years of successful technology transfer. This will unlock benefits of job creation, technology development and manufacturing growth.”

The historic signing of the free trade agreement between India and the UK will help increase trade between the two countries by at least USD 20 billion, and lead to the creation of more jobs, Vedanta Group chairman Anil Agarwal said.

The world's fifth and sixth-largest economies on Thursday signed a landmark free trade agreement that will cut tariffs on goods from cosmetics and textiles to whisky and cars, and allow more market access for businesses in the two nations.

The pact was signed during Prime Minister Narendra Modi's visit to the UK.

Indian Industry Delegation accompanying Hon’ble PM Modi for landmark UK visit

The Hon’ble Prime Minister of India, Shri Narendra Modi, undertook a landmark visit to the United Kingdom, culminating in the signing of the India–UK Free Trade Agreement (FTA) earlier today.

The delegation accompanying the Hon’ble Prime Minister included 16 key business leaders from Indian industry, led by Mr Sunil Bharti Mittal, Founder & Chairman of Bharti Enterprises and Co-Chair of the India-UK CEO Forum. Organised by the Confederation of Indian Industry (CII), the business delegation’s presence underscored the strong collaboration between government and industry in advancing India-UK economic ties.

Speaking on the occasion, Mr Mittal said, “Indian industry across all sectors welcomes the India-UK FTA with great optimism. This agreement establishes a modern, forward-looking partnership that will stimulate innovation, ease market access, and foster investment. Businesses in India as well as the UK stand to gain tremendously, as it lays the groundwork for scaling up bilateral cooperation across key growth sectors.”

The CII delegation engaged with senior members of the British government and policymakers, along with select UK CEOs. Discussions also focused on key sectors of collaboration, including skills and mobility, digital transformation and advanced technology, sustainability and climate action, and pharmaceuticals and healthcare.

Over the past five years, India has maintained a positive trade balance with the UK, which remains a key trading partner. Both economies aim to double bilateral trade to $120 billion by 2030. Currently, more than 970 Indian companies operate in the UK, contributing approximately £1.17 billion in corporation tax and providing employment to around 1.1 million people, playing a vital role in supporting local economies and livelihoods.

Once implemented, the India–UK FTA is expected to reduce trade barriers, enhance investor confidence, and promote joint ventures and technology transfers, especially in labour intensive sectors like textiles & apparel, leather & leather goods, gems & jewellery, marine products, besides others. The agreement will provide a strong framework for unlocking new opportunities in clean energy, digital technologies, life sciences, and advanced manufacturing. India’s rapidly growing market and manufacturing capabilities, combined with the UK’s strengths in innovation, finance, and high-end services, will further accelerate bilateral economic relations.

Another key benefit of the FTA is a reciprocal Social Security Agreement, allowing Indian professionals in the UK to continue home country contributions for up to three years. This aligns closely with CII’s earlier recommendation for a five-year exemption period.

Earlier in 2024, both sides launched a new Technology Security Initiative (TSI), recognising the growing importance of technology in national security and economic development. The TSI enhances bilateral cooperation in critical and emerging technologies across priority sectors, and the FTA further cements such partnerships.

Mr Chandrajit Banerjee, Director General of CII, added, “CII has been a longstanding advocate for a comprehensive and forward-looking India–UK Free Trade Agreement. This FTA marks a defining moment in our bilateral relationship, reflecting a shared commitment to inclusive growth, economic resilience, and industrial transformation. It creates a strong foundation for deeper market access, regulatory cooperation, and next-generation partnerships between Indian and UK businesses.”

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With signing of the FTA with India, we are sending a very powerful message that Britain is open for business, says British PM Keir Starmer.

PM Modi: From AI to critical minerals, from semiconductors to cyber security, India and UK will create the future together

PM Modi: India and UK are launching Vision 2035 to form partnerships in defence, education, technology and people to people relations, among others

PM Modi: India and UK have also agreed to a Double Contribution Convention (DCC) along with the FTA

PM Modi: UK's economy will benefit from India's skilled talent through the DCC

PM Modi: India, UK relationship has today reached historic levels. After many years of hard work, the nations have concluded a Comprehensive Economic Trade Partnership.

Indian textile, footwear seafood, engineering goods, gems & jewellery exports will get better access to the UK market. There will be new opportunities for India's agri and food processing products. FTA is especially beneficial for India's youth and farmers. UK products such as medical devices and aerospace parts will be available at affordable prices for India

PM Modi and UK PM Keir Starmer attend the joint press meet

PM Modi UK Visit LIVE: India and UK sign FTA deal at Chequers, reports Bloomberg

PM Modi UK Visit LIVE: PM Modi meets UK's Keir Starmer in London

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. - Keir Starmer on X

• PM Modi and UK PM Starmer to sign trade deal later today
• India to cut average tariffs on British goods from to 3% from 15%
• British soft drinks, cosmetics, cars and medical devices will find it easier to sell to the Indian market
• India to reduce tariffs on UK’s Whisky from 150% to 75% and then dropped further to 40% over the next 10 years
• FTA to increase UK exports to India by nearly 60% in the long run
• FTA to increase bilateral trade by nearly 39% in the long run, equivalent to £25.5 billion a year
• Locked in access for UK’s financial and professional business services to help expand in India’s growing market

The Free Trade Agreement (FTA) between India and the United Kingdom is expected to be signed on July 24 during Prime Minister Narendra Modi’s visit to the country. The deal, which was agreed on May 6, took around three months to conclude the legal vetting as well as to finalise the contours around tariff concessions for automobiles. Indian exports are set to benefit from duty elimination on about 99 percent of the tariff lines, covering almost 100 percent of the trade value, especially aiding labour-intensive shipments of textiles, marine products, leather, footwear, sports goods and toys, gems and jewellery. (Read More)

The widely anticipated free trade agreement between India and the UK has dented the bookings of luxury car brands, according to a report by The Times of India. The Indian government ratified the deal on July 22. Prime Minister Narendra Modi is expected to formally sign the agreement during his two-day visit to the UK. (Read More)

Prime Minister Narendra Modi expressed gratitude for the warm welcome he received from the Indian community as he arrived in London for his two-day UK visit. He said he was touched by the warm welcome. One of the key highlights of the Prime Minister's visit would be the signing of the landmark Free Trade Agreement (FTA) between India and UK. (Read More)

As Prime Minister Narendra Modi prepares to raise the issue of the return of Indian economic offenders during talks with UK Prime Minister Keir Starmer, the spotlight once again turns to the long-standing problem of high-profile fugitives finding refuge in Britain. Over the past decade, several Indian economic offenders have made the UK their base, exploiting legal loopholes and lengthy extradition procedures to evade justice back home. (Read More)

• India To Cut Average Tariffs For UK Goods To 3% From 15% Earlier
• FTA To Eliminate Tariff On 99% Marine Exports From India Including Shrimp, Fish Meal & Feed
• Tariffs On Indian Leather & Footwear Eliminated From 16% To Zero
• Duties On Indian Textiles To Be Reduced From 12% To Zero
• India's Footwear, Textiles & Leather Exports To UK To Get Pref Access Over B’desh, Pak & Cambodia
• Tariffs On Engineering Goods Reduced From 18% To Zero
• India's Generic Medicines Market To Get A Boost With Zero Duty Access To The UK Market
• Gems & Jewellery, Toys, Plastics & Chemicals To Benefit From Tariff Relaxation Under FTA
• FTA To Support Movement Of Professionals In Critical & Emerging Tech & Digital Trade
• Zero Duties On 95% Of Agriculture & Processed Food Tariff Lines
• FTA Excludes India's Core Agriculture Areas Including Dairy, Apples, Oats & Edible Oils
• Duties Eliminated On India's Agri Exports Of Fruits, Vegetables, Cereals, Pickle
• Duties Eliminated On India's Agri Exports Of Spices, Processed Foods & Ready To Eat Foods

When Britain’s Keir Starmer hosts Prime Minister Narendra Modi at his 16th century country retreat at Chequers, all eyes will be on the much-anticipated Free Trade Agreement. India’s commerce Minister Piyush Goyal and his British counterpart Jonathan Reynolds are set to sign the deal today. The agreement is poised to be the centrepiece of PM Modi’s short yet crucial trip. The India-UK FTA aims to deepen economic engagement by reducing trade barriers, improving market access, and encouraging investment across critical industries. (Read More)

India’s biggest IT services majors including Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro and Tech Mahindra together added 4,295 employees in the first quarter ended June 30, 2025. This is nearly double of what these companies hired in the previous quarter, though it’s still a muted net addition going by the industry’s peak hiring trends. (Read More)

India’s free trade agreement with the UK is set to make industrial inputs and consumer goods such as alcohol cheaper for Indian consumers—but it could also disrupt existing trade flows from Western allies such as the US and Japan, a Moneycontrol analysis shows. The Indian government ratified the deal on July 22, ahead of Prime Minister Narendra Modi’s two-day trip to the UK beginning July 23, where he is expected to formally sign the agreement. The deal, finalised earlier this year, is set to reduce tariffs on 85 percent of UK exports to India within a decade. (Read More)

The Securities and Exchange Board of India (Sebi) is considering a proposal that could allow large companies to launch initial public offerings (IPOs) with a smaller issue size and hence lower stake dilution. This move is aimed at making it easier for well-established and cash-rich businesses to list on stock exchanges without being burdened by existing minimum public shareholding norms. (Read More)

Landed in London. This visit will go a long way in advancing the economic partnership between our nations. The focus will be on furthering prosperity, growth and boosting job creation for our people. A strong India-UK friendship is essential for global progress. - PM Modi on X

According to the Federation of Indian Export Organisations (FIEO), Prime Minister Modi’s visits to both the UK and the Maldives are expected to enhance Indian export opportunities and contribute to broader regional stability.

British-Indian entrepreneur and politician Lord Rami Ranger praised PM Modi’s leadership ahead of the visit, stating that the signing of the Free Trade Agreement—expected on Thursday—would mark a major step forward in India-UK relations.

Apart from the trade deal, Prime Minister Modi will hold in-depth discussions with his UK counterpart, Prime Minister Keir Starmer. The talks will cover the full scope of bilateral relations as well as regional and global challenges of mutual interest.

Officials project that the India-UK FTA will significantly enhance trade volumes between the two countries, potentially doubling bilateral trade from the current $60 billion to $120 billion by the year 2030. The deal will also ease market access for British goods like whisky and automobiles.

The centrepiece of Prime Minister Modi’s visit will be the formal signing of the India-UK Free Trade Agreement (FTA), a deal that has been under negotiation for three years. Once signed, it is expected to remove tariffs on 99% of Indian goods exported to Britain and slash duties on 90% of British exports to India.

Good morning and welcome to Moneycontrol. Prime Minister Narendra Modi has begun his United Kingdom state visit. The trip is aimed at reinforcing strategic and economic cooperation between India and the UK.