India UK trade Deal 2025: On July 24, 2025, Prime Ministers Narendra Modi and Keir Starmer formally signed the India–UK Free Trade Agreement (FTA)—a milestone hailed by India Inc as a strategic catalyst for exports, investments, and innovation.
India UK trade Deal 2025: What’s in the Deal? 🚀
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Massive Tariff Reductions: UK goods to India see tariff cuts from ~15% to 3%; spirits like Scotch whisky and gin see immediate relief
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Duty-Free Exports: India secures 99% duty-free access to the UK market
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Auto & EV Sector Gains: UK vehicles and Indian auto exports benefit from phased tariff reductions
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Services & Mobility: New provisions ease intra-company transfers, social security, visas for professionals and students
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Double Security Pact: The Social Security Convention avoids dual pension charges on temporary workers
Why India Inc Approves
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Sectors including FMCG, textiles, healthcare, IT, leather, and footwear gain enhanced market access
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FICCI President calls it a “milestone reflecting India’s global economic stature”
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Expected to fuel export growth, attract UK investment (estimated £6 billion), and support jobs and innovation
Also read:
PM Modi in London Live Now: Full Updates| Landmark India–UK Free Trade Agreement Signed
PM Modi Meets King Charles Sandringham: Strengthening India‑UK Partnership on Trade & Sustainability
Economic Impact at a Glance
| Key Indicator | UK Impact | India Impact |
|---|---|---|
| GDP Growth | +£4.8 billion annually | Boost in service and goods exports |
| Wages & Revenue | +£2.2 billion wages, +£1.8 billion tax revenue | Surge in small/mid‑cap exports |
| Trade Volume | +£25.5 billion by 2040 | $120 billion bilateral trades by 2030 |
India UK trade Deal 2025: Strategic & Long‑Term Benefits
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Reinforces India’s economic pivot away from China and reliance on Europe/USA
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Serves as a template for future FTAs with EU and others
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Deepens the “living bridge” of 1.5 million Indians in the UK
What Lies Ahead
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Ratification Required: Deal awaits UK parliamentary approval (likely by mid‑2026)
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Ongoing Negotiations: Further discussions on bilateral investment protection and services expected.
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Implementation Phase: Roll‑out of phased tariff schedules and visa/social‑security protocols.
Also read:
PM Modi in London Live Now: Full Updates| Landmark India–UK Free Trade Agreement Signed
PM Modi Meets King Charles Sandringham: Strengthening India‑UK Partnership on Trade & Sustainability
The India–UK FTA is a win-win for both economies, offering tariff relief, job creation, and closer integration across goods, services, and professional mobility. For India Inc, this is a time to capitalize: now’s the moment to strategize around export-led growth, UK partnerships, and leveraging the synergy of this new economic partnership
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