The FTA ensures zero tariffs on 99 per cent of Indian exports to the UK, covering nearly 100 per cent of trade value. The move will eliminate import duties on sectors like textiles, leather, footwear, gems, and jewellery, making Indian goods more competitive in the UK market.
Prime Minister Narendra Modi and UK Prime Minister Keir Starmer signed a landmark India–UK Free Trade Agreement (FTA) on Thursday, unlocking vast opportunities in trade and investment for both nations.
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The agreement was finalised during PM Modi’s visit to the UK, where he arrived on Wednesday as part of a two-nation tour. The FTA was formally signed after his meeting with PM Starmer in London on Thursday.
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The bilateral talks took place in the historic Hawtry Room, where the two leaders held a one-on-one discussion to finalise what is being hailed as India’s most comprehensive trade deal and the UK’s most significant agreement since Brexit.
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Under the FTA, 99% of Indian exports to the UK will now face zero tariffs, covering nearly the entire trade value between the two countries.
Key Indian sectors such as textiles, leather, footwear, gems, and jewellery will benefit from the removal of import duties, making their products more competitive in the UK market.
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The UK will gain greater market access in India for products like whisky, automobiles, and other key exports, expanding the trade portfolio.
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According to Commerce Minister Piyush Goyal, the agreement is a major boost for Indian farmers and fisherfolk — with nearly 95% of agricultural goods and 99% of marine exports enjoying duty-free access to the UK.
