New Delhi/London, July 24, 2025 — India and the United Kingdom took a historic step forward in their strategic partnership on Thursday by signing a landmark Free Trade Agreement (FTA) that aims to double bilateral trade by 2030. The comprehensive pact, inked after years of negotiation, will significantly increase market access, eliminate tariffs on key exports, and boost economic cooperation across sectors.
Prime Minister Narendra Modi and UK Prime Minister Keir Starmer jointly witnessed the signing ceremony at Chequers, the British PM’s official country residence. Calling it a “historic day in India-UK relations,” Modi emphasized that the deal would create vast new opportunities for Indian exporters, particularly in the agricultural, processed food, and MSME sectors.
The agreement is set to remove tariffs on 99% of Indian exports, providing a major boost for industries such as textiles, footwear, seafood, engineering goods, gems, and jewellery. The UK, in turn, will benefit from tariff cuts on products like whisky and automobiles.
Starmer described the pact as the “biggest and economically most significant” trade deal Britain has signed since its exit from the European Union, marking a crucial post-Brexit milestone for the country’s global trade ambitions.
Both leaders held a one-on-one meeting followed by detailed discussions on key global and regional issues. Modi expressed gratitude to the UK for its strong condemnation of the recent terror attack in Pahalgam, underlining that both nations stand united against terrorism and “double standards” in its fight.
“We agree that forces with extremist ideologies cannot be allowed to misuse democratic freedoms,” Modi said, adding that cooperation between Indian and British security agencies, particularly on the extradition of economic offenders, will deepen further.
The two sides are also working on a broader “Vision 2035” roadmap to inject new energy into their comprehensive strategic partnership over the next decade.
On global issues, the leaders shared concerns about peace in the Indo-Pacific, the ongoing conflict in Ukraine, and the situation in West Asia. Modi reiterated India’s stand that sovereignty and territorial integrity of all nations must be respected, declaring that the current era demands “developmentalism, not expansionism.”
Before concluding, Modi also expressed condolences over the loss of British lives in the Air India plane crash in Ahmedabad last month.
