India-UK Free Trade Deal: Historic Partnership for New Era

Historic India-UK Free Trade Deal Sealed: A New Era of Strategic Partnership Begins

In what is being called a historic breakthrough, India and the United Kingdom have officially sealed a Free Trade Agreement (FTA) — the biggest trade deal the UK has signed since Brexit. Prime Minister Narendra Modi and newly elected UK Prime Minister Keir Starmer shared a warm telephonic conversation celebrating the momentous occasion.

This trade deal, finalised in London on Friday by India’s Commerce Minister Piyush Goyal and UK Trade Secretary Jonathan Reynolds, aims to deepen economic cooperation and strengthen the strategic partnership between the two nations.

What Does the Deal Include?

According to reports, the multi-billion-pound deal will eliminate tariffs on 90% of product lines, helping businesses on both sides. By 2040, the FTA is projected to boost the British economy by £4.8 billion annually. For India, this means greater access to UK markets, increased job creation, and a surge in exports.

Moreover, PM Starmer called it the “biggest deal the UK has done since leaving the EU.” PM Modi echoed the sentiment, saying the agreement would “catalyse trade, investment, innovation, and employment” in both countries.

Key Highlights of the Deal:

Tariff removal on 99% of Indian goods exported to the UK
Double Contribution Convention included for mutual tax benefits
Trade value covering almost 100% of product categories
Expected to increase bilateral trade significantly over the next decade

The trade deal with India will raise living standards, put more money in the pockets of British working people, and deepen the unique ties between our two nations. pic.twitter.com/TAXsPPN9Pv
— Keir Starmer (@Keir_Starmer) May 6, 2025

A Historic Phone Call

Here are key excerpts from the telephonic exchange between the two leaders:

PM Keir Starmer:
“Congratulations, Prime Minister. This is the biggest deal the UK has done since Brexit — and the most ambitious India has ever done.”

PM Narendra Modi:
“The credit goes to your leadership. This agreement will truly strengthen the India-UK strategic partnership.”

Their conversation reflected mutual respect and shared vision for a more collaborative future.

What This Means for India and the UK

With India being one of the fastest-growing economies in the world, this FTA unlocks new opportunities not just for large industries but also for small and medium businesses across both nations. From textiles and pharmaceuticals to IT and food products, Indian exports will now have a competitive edge in the UK market.

Furthermore, the agreement also sends a strong signal about India’s global trade ambitions, showcasing it as a proactive, reliable economic partner.

this isn’t just a trade agreement; it’s the beginning of a new chapter in a strategic partnership built on mutual growth, trust, and shared ambition.