Historic breakthrough in trade relations
India UK Free Trade Agreement 2025 Signed: On July 24, 2025, India and the United Kingdom signed a landmark Free Trade Agreement (FTA) in London during Prime Minister Narendra Modi’s official visit. The agreement concluded over three years of talks that began with the UK-India Enhanced Trade Partnership in January 2022. It is India’s most comprehensive trade pact and the UK’s most strategic post-Brexit deal.
Strategic goals of the FTA
The FTA seeks to reduce or eliminate tariffs on a wide range of goods and services between the two countries. Its core aim is to promote trade, investment, innovation, and technology cooperation. Both countries have set a $120 billion bilateral trade target by 2030, signaling a long-term economic partnership.
Key sectors and benefits
India will cut average tariffs on UK goods from 15% to 3%, giving British exporters greater access to India’s vast market. Indian exporters in textiles, gems and jewellery, engineering goods, marine products, auto parts, and leather will see major gains.
UK exports of medical devices, aerospace components, and machinery will become more affordable in India. British companies like Airbus and Rolls-Royce are set to begin delivering aircraft and engines to Indian carriers.
Static GK fact: The UK is India’s 6th largest trading partner among European nations.
Launch of India UK Vision 2035
The agreement includes the broader India-UK Vision 2035, a roadmap for deeper collaboration beyond trade. This includes:
- Defence Industrial Roadmap for joint manufacturing and R&D
- Technology Security Initiative for cyber and AI cooperation
- Climate Change Action to align net-zero goals
- Education partnerships through university exchange programs
Static GK tip: India signed its first FTA with Sri Lanka in 1998 under the South Asia Free Trade Area (SAFTA).
Strategic and geopolitical implications
The deal marks a shift in India’s global trade strategy, showcasing its willingness to engage with Western economies. For the UK, this FTA is a diplomatic and economic win after exiting the European Union.
The pact is expected to generate a £25.5 billion boost in annual bilateral trade and create thousands of jobs across both nations. It also strengthens counter-terrorism, intelligence sharing, and efforts against economic fraud and illegal migration.
Shared values and future cooperation
Both nations emphasized democratic values, commitment to rules-based international order, and zero tolerance for terrorism and extremism. The agreement is a model for partnerships built on trust, equality, and long-term strategic alignment.
Static Usthadian Current Affairs Table
India UK Free Trade Agreement 2025 Signed:
| Topic | Detail |
| Date of Signing | July 24, 2025 |
| Leaders Present | Narendra Modi, Keir Starmer |
| Trade Target | $120 billion by 2030 |
| UK Firms Benefiting | Airbus, Rolls-Royce |
| Indian Sectors Benefiting | Textiles, Auto Parts, Gems & Jewellery |
| Tariff Reduction | From 15% to 3% for UK goods |
| Vision 2035 Includes | Defence, Climate, Tech, Education |
| UK Status | Post-Brexit major trade partner |
| Employment Impact | Thousands of jobs expected |
| Strategic Outcome | Enhanced security and trade ties |
