India and the United Kingdom are set to sign a landmark Free Trade Agreement (FTA) on July 24, 2025, during Prime Minister Narendra Modi’s official visit to London. The Indian Union Cabinet has already approved the Comprehensive Economic and Trade Agreement (CETA), marking a significant milestone in India’s global trade partnerships.

The FTA is expected to bring major tariff reductions and enhance trade across various sectors. Nearly 99% of Indian exports, including textiles, leather, gems, and footwear, will gain duty-free access to the UK market. In return, India will slash import duties on British goods like Scotch whisky and automobiles. Whisky tariffs will drop from 150% to 75% immediately, and further reduce to 40% over ten years. Similarly, duties on UK-made cars will be brought down from over 100% to as low as 10% under specific quotas.

The deal also covers services, government procurement, and social security—aiming to avoid double contributions for Indian professionals working in the UK. Once implemented, the agreement is projected to double bilateral trade to $120 billion by 2030.

This is India’s first major trade pact with a Western country and the UK’s most comprehensive post-Brexit trade agreement. Although it will be signed now, the deal still requires parliamentary ratification in both countries and is expected to be fully operational by mid-2026.