India and the UK are set to finalize a landmark free trade agreement aimed at cutting tariffs and boosting market access between the two countries.
Under the pact, India will reduce tariffs on British exports such as whisky, gin, cars, and other goods, while the UK will open its market further to Indian textiles, gemstones, and other products. Indian Prime Minister Narendra Modi is in London to sign the deal, hold talks with Prime Minister Sir Keir Starmer, and meet King Charles.
The agreement, announced in May after nearly three years of negotiations, is expected to add £4.8 billion annually to the British economy and increase bilateral trade by an estimated £25.5 billion by 2040. Trade between the two countries stood at £42.6 billion in 2024.
Although the Indian cabinet has already approved the pact, it still requires UK parliamentary ratification and could take up to a year to come into effect. Modi described the deal as “ambitious and mutually beneficial,” predicting it would catalyze trade, investment, job creation, and innovation in both economies.
Starmer hailed the agreement as a “major win for Britain,” expected to create thousands of jobs and unlock opportunities for businesses nationwide. Indian electric and hybrid vehicle manufacturers are also set to gain enhanced access to UK markets.
During Modi’s visit, the two leaders are also expected to address last month’s Air India jet crash in Ahmedabad, which claimed 260 lives.
