India–UK sign historic FTA to double Bilateral Trade to $120 Billion by 2030: FIEO President
NEW DELHI : In a landmark moment for global trade, India and the United Kingdom have formally signed a Free Trade Agreement (FTA) during Prime Minister Shri Narendra Modi’s visit to the UK, in the presence of UK Prime Minister Keir Starmer. This historic pact is set to double bilateral trade to $120 billion by 2030, up from the current ~$60 billion.
Welcoming the agreement, Mr S C Ralhan, President of the Federation of Indian Export Organisations (FIEO), said that this is a transformational moment for Indian exporters. The India–UK FTA opens unprecedented opportunities across key sectors, especially for MSMEs and labour-intensive industries. It not only reduces tariffs but also eases regulatory barriers for services and investments.
Signed by Union Commerce and Industry Minister, Mr Piyush Goyal and UK Secretary of State for Business and Trade Mr Jonathan Reynolds, the FTA is the culmination of years of negotiations and reflects a new era in India–UK economic cooperation.
Key Highlights of the FTA:
- 99% of Indian exports will enjoy duty-free access to the UK market.
- Significant tariff reductions for Indian sectors such as textiles, footwear, leather, gems & jewellery, toys, sports goods, marine, processed food and garments.
- UK whisky tariffs to be reduced from 150% to 75% immediately, and eventually to 40% over 10 years.
- Automobile import duties from the UK to be lowered from 100%+ to 10%, under specific quotas.
- Enhanced market access for Indian services professionals, including IT experts, chefs, yoga instructors, musicians, and intra-corporate transferees.
- A finalized Social Security Agreement to eliminate dual contributions for Indian professionals working in the UK.
Mr Ralhan emphasized that this FTA will greatly boost India’s manufacturing and services exports, and attract UK investments into key growth sectors.
“Our exporters will now compete more effectively in a high-value market, and our service professionals will benefit from smoother mobility and reduced compliance hurdles,” he noted.
The agreement also delivers a significant win for India’s agriculture sector. Products like turmeric, cardamom, pepper, mango pulp, pickles, and pulses will now enjoy duty-free access to the UK, enhancing farmers’ market reach and profitability.
In FY 2024–25, India’s exports to the UK grew by 12.6% to $14.6 billion, while imports increased 2.3% to $8.6 billion, taking total goods trade to $23.2 billion.
“This FTA lays the foundation for a more resilient, equitable, and mutually beneficial economic partnership between India and the UK,” Mr Ralhan concluded.