New Delhi, May 6 (ANI) — Prime Minister Narendra Modi on Tuesday announced the finalisation of a landmark Free Trade Agreement (FTA) between India and the United Kingdom, describing it as a transformative moment in the economic and strategic partnership between the two nations.
Speaking at the ABP Network India@2047 Summit, Prime Minister Modi said that the FTA, centered on mutual trade and economic cooperation, marks the beginning of a new chapter in the growth and development of both countries. “Today is a historic day for India. I spoke to the British Prime Minister a while ago… I am happy to inform you that the India-UK free trade agreement has now been finalised. This agreement on mutual trade and economic cooperation between the two largest and open-market economies of the world will add a new chapter in the development of both countries,” he said.
Modi highlighted the significance of the agreement by referring to India and the UK as two of the world’s biggest open markets, coming together to create vast opportunities across key sectors. “The two world’s biggest open markets have come together, which will add to their histories. This will also open new opportunities for the MSMEs sector,” he noted.
India and the UK have successfully concluded not only an ambitious and mutually beneficial Free Trade Agreement but also a Double Contribution Convention. The Commerce and Industry Ministry hailed the deal as “historic and ambitious,” stating that it will provide a major boost to job creation, exports, and national growth.
According to the ministry, 99 percent of Indian exports will now benefit from zero duty under the agreement. It also emphasizes expanded trade in services, including IT and ITeS, financial services, professional and business services, and educational services. The forward-looking agreement is aligned with India’s vision of Viksit Bharat 2047, and complements the growth aspirations of both nations.
During his address, Prime Minister Modi reaffirmed India’s commitment to becoming a developed nation by 2047. “The presence of such a large number of youth and women in this summit is unique in itself. This is a reflection of the changing India, which is raising its voice in every field. The biggest dream of this changing India is — a Developed India by 2047 (Viksit Bharat). The country has capability, the country has resources, and the country also has willpower,” he stated.
Following the formal announcement of the agreement, Prime Minister Modi extended an invitation to UK Prime Minister Sir Keir Starmer to visit India—a gesture that was warmly accepted. In a phone conversation, both leaders celebrated the agreement as the largest trade deal the UK has signed since its exit from the European Union, and the most ambitious India has ever entered into.
A statement from the British High Commission confirmed the conversation and praised the deal as a “huge economic win” for the UK. “The Prime Minister spoke to the Prime Minister of India Narendra Modi today. The leaders began by celebrating the landmark UK-India Free Trade Agreement announced today — a deal which will add billions to the UK economy, boost wages and deliver on this government’s Plan for Change,” the statement said.
British High Commissioner to India, Lindy Cameron, echoed the sentiment, calling it a “new era of growth for two of the world’s largest and most innovative economies.” In a post on X, she wrote: “Such exciting times ahead for the UK-India partnership. Thrilled to welcome this landmark trade deal… and so proud of the amazing negotiating teams on both sides.”
In addition to trade discussions, the two leaders also addressed recent regional developments. Prime Minister Starmer offered his condolences over the recent terrorist attack in Jammu and Kashmir. “Turning to the terrorist attack in Jammu and Kashmir last month, the Prime Minister reiterated his deep condolences at the tragic and senseless loss of life,” the High Commission noted.
The UK Prime Minister expressed his eagerness to visit India at the earliest opportunity, signaling a deepening of bilateral ties beyond economics into diplomacy and strategic collaboration.
As both nations look ahead, the India-UK FTA stands as a powerful symbol of shared growth, openness, and global cooperation—positioning the two democracies as partners in shaping the economic future.
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