India and the United Kingdom have officially signed a long-anticipated Free Trade Agreement (FTA), marking a major milestone in bilateral relations. Prime Minister Narendra Modi announced the development on social media platform X, hailing it as a “historic milestone” that will significantly deepen the India-UK Comprehensive Strategic Partnership.
PM Modi highlighted that the deal will stimulate trade, investment, innovation, job creation, and economic growth in both nations. The FTA is expected to strengthen existing ties and open new avenues across key sectors.
Delighted to speak with my friend PM @Keir_Starmer. In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention. These landmark agreements will further deepen our…
— Narendra Modi (@narendramodi) May 6, 2025
Negotiations for the agreement began during the tenure of former UK Prime Minister Boris Johnson. However, discussions were prolonged due to several sensitive issues that needed resolution. These included visa provisions for Indian professionals, tariff reductions on UK exports such as automobiles and Scotch whisky, and concerns around the UK’s Carbon Border Adjustment Mechanism (CBAM)—a tax imposed on carbon-intensive imports like steel and fertilisers.
The finalisation of the FTA is seen as a significant diplomatic and economic win for both countries. It comes at a time when India is actively pursuing global trade partnerships to boost its manufacturing and export sectors, while the UK continues to look beyond the EU for new economic alliances post-Brexit.
