Prime Minister Narendra Modi greets when she starts to visit the United Kingdom and Maldives, in Nový Delhi 23 July 2025. Photo Credit: DPR PMO/or Photo
India and the United Kingdom will sign an agreement on free trade in London on Thursday (July 24, 2025) in London, allowing the export of work -intensive products, such as leather, shoes and clothing at increased prices, and importing whiskey and Britain’s cars cheaper.
The pact also helps double trade between the two economies to $ 120 billion by 2030.
Also read: Warning and Optimism: On India FTA with the United Kingdom
The pact, officially called the complex economic and trade agreement, will be signed in the presence of Prime Minister Narendra Modi and British Prime Minister Keir Starmer.
The Minister of Commerce and Industry Piyush Goyal and his British counterpart Jonathan Reynolds would sign the agreement. Once the pact has signed, it will require the British Parliament’s approval before it can manifest itself. The process may take about a year.
PM Modi on Wednesday (July 23, 2025) left for a four -day visit to the UK and Maldives.
Both countries announced the conclusion of the negotiations on the Terms Agreement 6 May.
The pact has chapters on issues, including goods, services, innovation, government contracts and intellectual property rights.
Both countries also concluded negotiations on the Agreement on the Convention on the Double Contribution or the Social Security Agreement. This would help avoid a double contribution to the social security funds of Indian experts working after a limited period in Britain.
In such commercial agreements, two countries either eliminate or significantly reduce the duties on the maximum goods traded between them. They also facilitate standards to support trade in services and bilateral investments.
According to the pact, 99% of Indian exports would benefit zero duties on the British market.
The main proposals of the agreement include a reduction in import duty to British whiskey and gin from 150% to 75% before a 40% decrease by ten years of agreement; Car tariffs will be reduced from more than 100% to 10% within the quota.
Other goods with reduced import obligations that can open markets and cheaper trade for companies and Indian consumers include cosmetics, aviation, lamb, medical facilities, salmon, electric machines, soft drinks, chocolate and biscuits.
Export opportunities for home -intensive industries such as textiles, marine products, leather, shoes, sports goods and toys, gems and jewelry, engineering goods, car and engines and ecological chemicals will open up.
On the service queue, the agreement alleviates mobility for professionals, including contractual service suppliers; Business visitors; Investors; Intra-Corporate Transferees; partners and dependent children intra-corporates with the right to work; And independent experts such as yoga instructors, musicians and chefs.
Indian exports to the UK increased by 12.6% to $ 14.5 billion, while imports increased by 2.3% to $ 8.6 billion in 2024-25.
Bilateral trade between India and the United Kingdom increased to $ 21.34 billion from $ 20.36 billion in the years 2022-23.
Published – 23 July 2025 17:55
