India and the United Kingdom have officially concluded a Free Trade Agreement (FTA), marking a significant development in bilateral economic relations and the first major trade pact between the two countries in the post-Trump tariff era.
Key Points of the India–UK FTA Announcement:
- Prime Minister Narendra Modi, in a message on X (formerly Twitter), hailed the agreement as a “historic milestone” and emphasized its mutual benefits.
- Modi also revealed that the nations agreed on a Double Contribution Convention, likely aimed at preventing double taxation and encouraging investment.
- He extended an invitation to UK Prime Minister Keir Starmer for a state visit to India.
Reaction from the UK:
- PM Keir Starmer, through an official Indian government statement, underscored the deal as a key step in his “Plan for Change”, aimed at:
- Strengthening international alliances
- Reducing trade barriers
- Bolstering the UK’s economic security and global ties
Background:
- This FTA follows multiple rounds of negotiation over several years and comes amidst broader global efforts to diversify trade partnerships.
- The agreement is expected to:
- Reduce or eliminate tariffs on key goods
- Enhance services trade (especially IT, finance, and legal services)
- Facilitate smoother investment flows and professional mobility
- Provide greater access for Indian exporters to UK markets and vice versa
