Prime Minister Narendra Modi meets British Prime Minister Keir Starmer during a meeting. India and United Kingdom sign the historic free trade agreement (FTA) in the presence of both PMs and was signed by Union Minister Piyush Goyal and his British counterpart Jonathan Reynolds on July 24, 2025.
| Photo Credit: WPA Pool
Union Minister Piyush Goyal and his British counterpart Jonathan Reynolds sign the Free Trade agreement in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer, at Chequers on Thursday (July 24, 2025).
The FTA was signed at Chequers, the British Prime Minister’s official country residence. External Affairs Minister S. Jaishankar, U.K. Chancellor Reeves also present at the signing ceremony.
The FTA is expected to benefit 99% Indian exports from tariff and will make it easier for British firms to export whisky, cars and other products to India besides boosting the overall trade basket, according to officials.
The deal, firmed up after three years of negotiations, is expected to ensure comprehensive market access for Indian goods across all sectors and India will gain from tariff elimination on about 99% of tariff lines (product categories) covering almost 100 per cent of the trade values, they said.
The U.K. said Indian consumers will benefit from improved access to the best British products — from soft drinks and cosmetics to cars and medical devices — as average tariffs will drop from 15% to 3% after the FTA kicks in.
The UK already imports 11 billion pounds in goods from India but liberalised tariffs on Indian goods will make it easier and cheaper for British consumers and businesses to buy Indian products and boost Indian businesses’ exports to the UK, it said in a statement, hours before the FTA was inked.
“Our landmark trade deal with India is a major win for Britain,” Starmer was quoted as saying in the readout.
Indian officials said India’s landmark free trade pact with the U.K. will benefit it significantly as the deal will ensure the elimination of tariffs on approximately 99% of tariff lines, covering nearly 100% of the trade value.
The FTA is also set to make it easier for British firms to export whisky, cars and other products to India, besides boosting the overall trade basket, they said.
(with inputs from PTI)
Published – July 24, 2025 03:31 pm IST