On July 24, 2025, India and the United Kingdom signed a historic Free Trade Agreement (FTA) during Prime Minister Narendra Modi’s official visit to London, marking a key milestone in their economic relationship. The agreement, expected to increase bilateral trade by USD 34 billion annually, is the largest trade deal the UK has signed since its departure from the European Union in 2020. The deal was finalized between India's Commerce Minister Piyush Goyal and the UK's Secretary of State for Business and Trade, Jonathan Reynolds, following successful bilateral talks between Prime Minister Modi and his British counterpart, Keir Starmer.
Keir Starmer praised the agreement, calling it a “landmark deal” that would create thousands of jobs and unlock new opportunities for UK businesses, boosting investment and putting money in the pockets of the British workforce. According to Starmer, this deal is a testament to the UK’s new post-Brexit trade strategy, ensuring economic growth and the creation of high-quality jobs. The FTA is India’s first significant trade deal with a developed country in over a decade, marking a new era of economic cooperation between the two nations.
The agreement is particularly important for both countries, as it deepens their economic ties and strengthens their partnership in business, trade, and investment. For the UK, it is the most important trade agreement since its exit from the European Union, while for India, it is a step toward securing a larger foothold in the global market. The deal is expected to boost trade in several sectors, including technology, pharmaceuticals, and manufacturing, benefiting both nations in terms of growth, job creation, and trade balance.
As the two countries continue to strengthen their partnership, this FTA opens up new avenues for collaboration and sets the stage for further economic opportunities in the coming years. The deal is also a significant achievement in Prime Minister Modi's vision of enhancing India’s global economic footprint, marking a historic chapter in India-UK relations.
