'Historic Day In Our Ties': PM Modi Hails India-UK Trade Deal

Last Updated:July 24, 2025, 16:44 IST

New Delhi and London inked a major agreement that will significantly improve market access and will boost bilateral trade by around $34 billion annually.

Prime Minister Narendra Modi speaks during a joint press statement after a meeting with his British counterpart Keir Starmer at Chequers Estate, in UK. (PTI)

Prime Minister Narendra Modi on Thursday hailed the signing of the India-UK Free Trade Agreement (FTA), saying that it is a historic day in the bilateral relationship of both the countries.

While addressing the joint meet with UK PM Keir Starmer after inking the key pact, PM Modi said that a comprehensive economic trade agreement has been completed today and Indian textile, footwear, gems, jewellery, seafood will get better access in UK market.

“Today marks a historic day in our relations. I am delighted that after the hard work of several years, today our two nations have signed the Comprehensive Economic and Trade Agreement," he said as quoted by news agency ANI.

While hailing the agreement, PM Modi further emphasised on the creation of new job opportunities saying that this agreement will especially benefit Indian youth, farmers, fishermen and MSME sector.

“This Agreement is not just an economic agreement but also the plan for a shared prosperity. On one side, Indian textile, footwear, gems and jewellery, seafood and engineering goods will get better market access in the UK. 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," he added.

New Delhi and London inked a major agreement in the presence of Union Minister of Commerce and Industry Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds.

The deal will significantly improve market access and will boost bilateral trade by around $34 billion annually. The FTA is projected to double bilateral trade by 2030, from the current $60 billion mark.

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 as reported by news agency PTI.

The trade 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% of the trade values.

What Are The Key Features Of The Agreement?

The India-UK FTA is designed to cover more than just trade in goods. It includes commitments on services, investment facilitation, labour mobility, public procurement, and cooperation on technical standards. However, certain sectors such as agriculture and sensitive financial services have been kept out of its purview for now.

For Indian businesses, especially small and medium enterprises, the removal of tariffs offers a significant competitive edge. In the textiles sector, where Indian exports often face stiff competition from countries like Bangladesh and Vietnam, the new deal is expected to level the playing field. Indian exporters will now have better pricing power in the UK market, particularly in garments and home furnishings.

The gems and jewellery sector, centred in cities like Surat and Mumbai, is expected to benefit from easier access and lower costs, making Indian exports more attractive in the UK’s high-value market. Similarly, sectors like leather, handicrafts, and engineering goods are likely to see increased order volumes as duties drop and logistical barriers ease.

Crucially, the agreement simplifies regulatory standards for various products. Technical barriers to trade, such as duplicative testing requirements or product certifications, will now be streamlined. This will reduce compliance costs and speed up market access for Indian manufacturers.

(With inputs from agencies)

London, United Kingdom (UK)

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