Hindi / English
The India-UK Free Trade Agreement (FTA), finalised in 2025, is a major development in their business relations. It aims to boost trade and economic cooperation between the two countries. The deal was long awaited, with talks starting in 2022 under UK Prime Minister Boris Johnson. It is expected to help businesses, especially small ones in India.
How the Agreement Happened
After Brexit, the UK started looking for new trade partners, and India was a top choice. As global trade changed, both countries saw the need for a deal. Several UK governments worked on the negotiations before the agreement was finally sealed.
What This Agreement Means
The FTA brings three main benefits:
It gives the UK an edge over India’s other trade talks, like with the US and the European Union.
It shows that all political parties in the UK support strong ties with India.
It strengthens the economic part of the India-UK Comprehensive Strategic Partnership.
Impact on Business and Trade
This deal is expected to give a big push to trade. By late 2024, India and the UK had a trade value of £40.9 billion. India is the UK’s 11th largest trade partner, making up 2.4% of the UK’s total trade. The FTA aims to grow these numbers by making market access easier and cutting tariffs.
What’s Next for India and UK?
The agreement will help both nations work together in areas like defence, education, and technology. The Indian government has said that this is only the beginning of a bigger partnership. To keep the momentum going, Prime Minister Modi has invited UK Prime Minister Keir Starmer to visit India.
Why This Deal is Important
Apart from trade and business, the FTA strengthens India-UK relations in defence and security. It helps build trust and cooperation in many key areas, making the partnership even stronger.
