1 / 10India and UK Sign Free Trade Agreement | Prime Minister Narendra Modi and British Prime Minister Keir Starmer formalised a long-awaited Free Trade Agreement (FTA) on Thursday, July 24, during Modi’s two-day visit to the UK. According to Bloomberg, the FTA has been signed and the documents have been exchanged. The deal had been in the works for three years and aims to lower tariffs, increase market access, and deepen bilateral ties. (Image: Reuters)
2 / 10Tariff Cuts on Whisky, Cars and Textiles Among Key Features of the Deal | The proposed agreement includes tariff reductions on major exports from both sides. India will cut duties on British whisky from 150% to 75% immediately, eventually lowering it to 40% over a decade. Car duties will be brought down from over 100% to 10% under a quota system, while 99% of Indian exports such as textiles are expected to benefit from zero-duty access. (Image: Reuters)
3 / 10Trade Pact Aims to Increase Bilateral Trade by £25.5 Billion by 2040 | The FTA, once in effect, is expected to boost bilateral trade between India and the UK by nearly 39% over the long term. Officials project a trade increase of £25.5 billion a year by 2040, through greater market integration and eased regulatory barriers. (Image: Reuters)
4 / 10UK Economy Set to Gain £4.8 Billion a Year from the Agreement | According to British government estimates, the agreement could add £4.8 billion annually to the UK’s economy by 2040. Although this is modest compared to the UK’s overall GDP, it would mark the country’s most significant trade deal since leaving the European Union. (Image: Reuters)
5 / 10Nearly £6 Billion in New Investments and Export Wins Announced | Ahead of the signing, the UK government announced nearly £6 billion in fresh investment and export agreements. British companies such as Airbus and Rolls-Royce have secured new business in India, while Indian firms are set to expand their presence in the UK. (Image: Reuters)
6 / 10Deal to Cover Services, Procurement and Business Mobility | The agreement is expected to include provisions for financial and professional services, as well as access to India’s procurement market – especially in clean energy. It will also simplify temporary business travel, although visa issues remain outside the scope of the deal. (Image: Reuters)
7 / 10Social Security Relief for Temporary Workers Included | A double contribution convention will be part of the agreement. It will allow Indian workers in the UK, and British workers in India, to be exempt from making social security payments in both countries during short-term postings. (Image: Reuters)
8 / 10India Fails to Secure Carbon Tax Exemption; Investment Treaty Talks Ongoing | India’s request for exemption from the UK’s Carbon Border Adjustment Mechanism (CBAM) was not accepted. Meanwhile, negotiations for a bilateral investment treaty are continuing in parallel and are yet to be concluded. (Image: Reuters)
9 / 10PM Modi’s Fourth UK Visit Focuses on Strengthening Strategic Ties | This marks Prime Minister Modi’s fourth visit to the UK since 2014. He held wide-ranging talks with Prime Minister Starmer at Chequers, during which both leaders formalised the FTA and were expected to renew the Comprehensive Strategic Partnership covering defence, education, and technology. (Image: Narendra Modi/X)
10 / 10Diaspora, Business Leaders Welcome Strengthening India-UK Ties | Modi’s visit has been welcomed by the Indian diaspora in the UK and business leaders on both sides. With India-UK bilateral trade reaching $55 billion in 2023–24 and new cooperation frameworks under discussion, both governments view the FTA as a critical step in taking the partnership forward. (Image: Narendra Modi/X)
