By Anjali Sharma
WASHINGTON – India and the United Kingdom on Thursday formalized and signed the Free Trade Agreement in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer.
The deal is to enhance bilateral trade by $34 billion annually, has been welcomed by the industry leaders, terming the deal historic and a game-changer for both nations.
The delegation accompanying the Prime Minister included 16 key business leaders from Indian industry, led by Sunil Bharti Mittal, Founder & Chairman of Bharti Enterprises and Co-Chair of the India-UK CEO Forum.
It was organized by the Confederation of Indian Industry, the business delegation’s presence underscored the strong collaboration between government and industry in advancing India-UK economic ties.
Mittal said, “Indian industry across all sectors welcomes the India-UK FTA with great optimism. This agreement establishes a modern, forward-looking partnership that will stimulate innovation, ease market access, and foster investment. Businesses in India as well as the UK stand to gain tremendously, as it lays the groundwork for scaling up bilateral cooperation across key growth sectors.”
Chandrajit Banerjee, Director General of CII, added, “CII has been a longstanding advocate for a comprehensive and forward-looking India–UK Free Trade Agreement. This FTA marks a defining moment in our bilateral relationship, reflecting a shared commitment to inclusive growth, economic resilience, and industrial transformation. It creates a strong foundation for deeper market access, regulatory cooperation, and next-generation partnerships between Indian and UK businesses.”
Hemant Jain, president, PHDCCI, welcomed the deal stated “The signing of the India–UK Free Trade Agreement is a landmark moment for Indian industry. We commend both governments for finalizing a deal that promises to catalyze bilateral trade, enhance competitiveness of Indian SMEs, and open new doors for industries in manufacturing, services, and technology sectors. The agreement is a testimony to the strategic depth that will lead to doubling of bilateral trade to over US$120 billion by 2030 with UK.”
Jaguar Land Rover said the India-UK free trade agreement would help the marquee automaker to access lower tariffs in India for its luxury models.
Under the India-UK FTA, India will reduce tariffs on automotive imports from about 110 per cent to 10 per cent under quotas on both sides, benefiting companies such as Jaguar Land Rover (JLR).
“We welcome this free trade agreement between the UK and India, which over time will deliver reduced tariff access to the Indian car market for JLR’s luxury vehicles,” a company spokesperson said in a statement.
Mahindra Group CEO and MD Anish Shah said that the landmark trade agreement between India and the UK marks a transformative moment in the global economic landscape. “It’s not just a win for trade, but a blueprint for a modern, values-led partnership that puts innovation, sustainability, and inclusive growth at the heart of global collaboration.”
India–UK FTA is expected to reduce trade barriers, enhance investor confidence, and promote joint ventures and technology transfers, especially in labor intensive sectors like textiles & apparel, leather & leather goods, gems & jewelery, marine products, besides others.
The agreement will provide a strong framework for unlocking new opportunities in clean energy, digital technologies, life sciences, and advanced manufacturing.
India’s rapidly growing market and manufacturing capabilities, combined with the UK’s strengths in innovation, finance, and high-end services, will further accelerate bilateral economic relations.
The key benefit of the FTA is a reciprocal Social Security Agreement, allowing Indian professionals in the UK to continue home country contributions for up to three years. This aligns closely with CII’s earlier recommendation for a five-year exemption period.
