London/New Delhi, May 6, 2025 — The United Kingdom and India have officially concluded a landmark Free Trade Agreement (FTA), marking one of the most significant post-Brexit trade developments for the UK and a major diplomatic victory for India.
After more than three years of negotiations and over a dozen formal rounds of talks, the agreement was finalized on May 6, 2025. Both governments described the deal as a historic turning point in their economic partnership.
The agreement is expected to increase bilateral trade by up to £25.5 billion ($34 billion) by 2040 and generate thousands of new jobs in both countries. It will eliminate or reduce tariffs on a wide range of goods, including Scotch whisky, British automobiles, Indian textiles, and pharmaceutical products.
“This deal strengthens our ties with one of the world’s fastest-growing economies and puts British businesses at the heart of global trade,” said UK Prime Minister Rishi Sunak. “It also reflects our shared values and ambitions for a future of innovation and prosperity.”
Indian Prime Minister Narendra Modi echoed the sentiment, stating that the agreement “opens up new frontiers” for India’s exporters and will deepen collaboration in sectors like renewable energy, digital trade, and education.
Key Benefits of the Deal:
- Tariff Cuts: Major reductions on goods such as whisky (up to 150% tariffs slashed), UK cars, and Indian textiles.
- Market Access: UK gains stronger foothold in India’s service and tech markets; Indian professionals will benefit from easier mobility pathways.
- Job Creation: Expected to support tens of thousands of new roles across manufacturing, retail, and digital sectors.
- Sustainability Focus: Includes joint commitments on green technology and climate change collaboration.
The deal is also being seen as a strategic alignment between two Commonwealth partners amid shifting global trade dynamics. Final ratification is expected by mid-2025, with implementation beginning shortly afterward.
