India-UK FTA Pact Biggest Gain Since Brexit: Experts

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India and UK Seal Historic Free Trade Agreement, Bolstering Economic Ties

By TRH News Desk

NEW DELHI, May 6, 2025 — In a landmark development, Prime Minister Narendra Modi and UK Prime Minister Keir Starmer announced the successful conclusion of the India-UK Free Trade Agreement (FTA) and a Double Contribution Convention on Tuesday.

The announcement marked a new chapter in bilateral economic relations. The announcement, made following a phone call between the two leaders, is poised to deepen the Comprehensive Strategic Partnership and catalyze trade, investment, and job creation.

Modi described the agreement as a “historic milestone” in a post on X, stating, “These landmark agreements will further deepen our Comprehensive Strategic Partnership, and catalyse trade, investment, growth and jobs creation.”

Starmer echoed the sentiment, calling it “fantastic news for British business, British workers, and British shoppers, delivering on our Plan for Change.”

The FTA, finalized after negotiations that began in January 2022, covers 26 chapters, including goods, services, investments, and intellectual property rights.

The Guardian reported that “90% of the free trade agreement” had been agreed upon by April, with the contentious issue of visas for Indian workers “largely resolved”.

The deal is expected to boost the £42 billion ($53.22 billion) trade relationship, with UK exports to India worth £16.6 billion in the 12 months to June 2024. UK-based experts hailed the agreement as a significant post-Brexit achievement.

“A trade deal with India, one of the world’s fastest-growing economies, is a major win for the UK,” said Jonathan Reynolds, UK Business and Trade Secretary, quoted by the BBC.

“Whether it’s lowering Indian tariffs to help British firms export or boosting investment which already supports over 600,000 jobs, this deal aligns with our core mission of driving economic growth,” he added.

India’s stress on migration mobility of skilled professionals in IT and healthcare has been accommodated in the FTA, sources said. The UK bargained for tariff reductions for British cars, Scotch whisky, and financial services.

“The FTA is expected to open up more access for Indian exports, especially in textiles and apparel,” said a post on X by @AskPerplexity, reflecting optimism about sectoral gains.

A UK government source told The Guardian that mobility issues were nearly resolved, but Indian Commerce Minister Piyush Goyal clarified that “immigration was not a part of the discussions”, emphasizing business mobility as a separate issue.

“This deal is a testament to both nations’ commitment to a balanced, mutually beneficial agreement,” Nirmala Sitharaman, India’s Finance Minister, told reporters after talks with UK Chancellor Rachel Reeves, as quoted by The Guardian.

The BBC emphasized the deal’s potential to “unlock valuable markets” for British industries, with India projected to become the third-largest economy by 2050.

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