India and the UK Sign Historic Free Trade Deal and Launch Vision 2035 Strategic Partnership
On July 24, 2025, Prime Minister Narendra Modi and UK Prime Minister Keir Starmer signed a landmark Free Trade Agreement (FTA) in London. The deal—India’s first major pact with a European nation and the UK’s most significant post‑Brexit trade agreement—sets a bold agenda for the Indo-British economic relationship.
Trade Gains and Economic Impact
The FTA grants **99 % duty‑free access** for Indian exports to the UK, targeting textile, leather, gems, and pharma sectors, while the UK secures reduced tariffs on around **90 % of its exports**, including whisky, gin, cars, cosmetics, and medical devices. Projected to boost bilateral trade by **£25.5 billion annually** and increase UK GDP by **£4.8 billion**, the agreement also opens new employment, investment, and market opportunities on both sides.
Services, Mobility, and Social Security
By allowing enhanced access for Indian professionals—chefs, yoga instructors, musicians, engineers—the pact helps ease mobility while a social security agreement prevents double deductions for short‑term workers.
Vision 2035: Beyond Trade
Alongside the FTA, the two leaders launched **UK–India Vision 2035**, a renewed Comprehensive Strategic Partnership focusing on defence, climate action, education, technology, and border security. Highlights include a Defence Industrial Roadmap and cooperation in innovation and skills development.
Next Steps & Ratification
The agreement was signed by PM Modi and PM Starmer in London. However, formal implementation is contingent on parliamentary approval in both countries, expected by mid‑2026.
This strategic deal reinforces India’s “Make in India” ambition and marks a new era in Indo-British relations, anchored by economic growth, shared innovation, and strong civic ties.
For analysis and sectoral insights on the India–UK partnership, visit gpsc-ojas.com/news/.
