New Delhi/London, July 25 — India and the United Kingdom have signed a long-awaited Free Trade Agreement (FTA) aimed at doubling bilateral trade by 2030. The deal was inked in London by Commerce Minister Piyush Goyal and UK Trade Secretary Jonathan Reynolds, in the presence of Prime Ministers Narendra Modi and Keir Starmer.
Titled the Comprehensive Economic and Trade Agreement, this pact is seen as a significant milestone in the economic ties between the two nations. The agreement opens up new market access across sectors while offering strategic protections for sensitive industries.
Key Highlights of the Pact
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Farmers First: Indian agricultural and processed food products like turmeric, pepper, cardamom, mango pulp, pickles, and pulses will get duty-free access to the UK market. India says this will give its farmers greater reach and higher margins compared to European competitors.
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Safeguards in Place: India will not offer tariff concessions on key products such as dairy, apples, oats, and edible oils, shielding its domestic farm sector from cheaper British imports.
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Fisheries Gain: Coastal states like Andhra Pradesh, Odisha, Kerala, and Tamil Nadu are expected to benefit as Indian shrimp, tuna, fishmeal, and feeds will now enter the UK market duty-free.
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Labour-Intensive Sectors Win: Indian leather, footwear, textiles, and apparel exports will gain improved access, while British whiskey, cars, and medical devices will be cheaper in India.
Prime Minister Modi hailed the agreement as one that “reduces the cost of doing business” and enhances trust in economic cooperation. He also thanked the UK for its support following the Pahalgam terror attack and expressed condolences over the recent plane crash in Ahmedabad that claimed British lives.
UK Prime Minister Keir Starmer called the deal “historic”, saying it would boost wages and lower the cost of Indian goods in Britain, including clothing, shoes, and food. He also highlighted the benefits for Scottish whiskey producers, one of the UK’s major export interests.
Modi will now travel to the Maldives, marking a diplomatic reset after strained ties under President Muizzu’s administration.