India, UK sign landmark free trade agreement, PM Modi calls it 'historic' for bilateral ties

India and the United Kingdom on Thursday signed a landmark free trade agreement (FTA) aimed at significantly enhancing market access and boosting bilateral trade by an estimated USD 34 billion annually and is set to double the trade between the two nations to USD 120 billion by 2030.

The agreement was formalised in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer.

Officials said the FTA will benefit 99 per cent of Indian exports through tariff reductions and will also ease the export of British products such as whisky, cars and other goods to the Indian market, thereby broadening the overall trade portfolio.

Concluded after three years of negotiations, the deal is expected to provide comprehensive market access for Indian goods across all sectors. India will benefit from the elimination of tariffs on nearly 99 per cent of tariff lines, covering almost the entire value of traded goods, they added.

Addressing a joint press conference with Starmer after signing the trade pact, PM Modi said this day marks a historic shift in ties between India and the UK and



that he is delighted this comes after hard work of several years.

He further added that the agreement is not just an economic deal but a plan for shared prosperity. "On one side, Indian textile, footwear, gems and jewellery, seafood and engineering goods will get better market access in the UK. New opportunities will emerge in the UK market for India's agricultural produce and processed food industry. This agreement will especially benefit Indian youth, farmers, fishermen and the MSME sector. On the other hand, for the people of India and industry, products made in UK like medical devices will be available at reasonable and affordable prices," PM Modi said.

Remembering the victims from the UK in the Ahmedabad plane crash, he expressed condolences to the bereaved families, calling Indian-origin people in the UK a "living bridge in relations between the two nations".

"They did not just bring curry from India but also creativity, commitment and character. Their contribution is not restricted to just the economy of UK but is also reflected in the culture, sports and public service of the UK." PM Modi added.