London [UK], July 24 (ANI): Prime Minister Narendra Modi lauded the signing of the landmark India-UK Free Trade Agreement on Thursday, calling it a significant milestone in the bilateral relations between the two nations. During a joint press statement with UK Prime Minister Keir Starmer, PM Modi highlighted enhanced market access and economic opportunities for both countries while expressing gratitude for the warm hospitality received during his official visit.
“First of all, I would like to express my heartfelt gratitude to Prime Minister Starmer for the warm welcome and gracious hospitality. Today marks a historic day in our bilateral relationship. I am pleased to note that, after many years of hard work, the Comprehensive Economic and Trade Agreement between our two countries has been concluded,” PM Modi stated.
Earlier today, the much-awaited India-UK FTA was signed in the presence of PM Modi and Prime Minister Starmer, enabling greater access to goods and services between the two countries. PM Modi is currently on a two-day official visit to the UK.
“This agreement not only paves the way for economic partnership but also serves as a blueprint for our shared prosperity,” PM Modi emphasized.
He noted that Indian sectors such as textiles, footwear, gems and jewelry, seafood, engineering goods, agricultural products, and processed foods will gain improved access to the UK market—benefiting youth, farmers, fishermen, and MSMEs in India. For the UK, the agreement ensures more affordable access to its products, including medical devices and aerospace components, in India.
“On one hand, Indian textiles, footwear, gems and jewelry, seafood, and engineering goods will now have better access to the UK market. Indian agricultural products and processed food industries will also find new opportunities in the UK. This agreement will prove beneficial to the youth, farmers, fishermen, and the MSME sector in India,” PM Modi said.
“On the other hand, people and industries in India will be able to access products made in the UK—such as medical devices and aerospace components—at more affordable prices,” he added.
On May 6, Prime Ministers Modi and Starmer announced the successful conclusion of a mutually beneficial India-UK Free Trade Agreement. This forward-looking agreement aligns with India’s vision of Viksit Bharat 2047 and supports the growth aspirations of both countries.
The idea behind the trade deal is to eliminate or reduce tariffs on imports and exports between the two nations, making Indian products more competitive in the UK and vice versa. Both nations aim to increase bilateral trade to USD 120 billion by 2030.
The FTA is expected to boost key sectors such as textiles, leather, footwear, sports goods and toys, marine products, gems and jewelry, engineering goods, auto parts and engines, and organic chemicals.
“The FTA ensures comprehensive market access for goods across all sectors, covering all of India’s export interests. India will gain from tariff elimination on about 99% of the tariff lines, covering almost 100% of the trade value, offering huge opportunities for increased bilateral trade between India and the UK,” India’s Commerce and Industry Ministry said in its release on May 6.
The UK government stated that India’s average tariff on UK products will drop from 15% to 3% under the FTA.
According to the UK’s official statement, British companies exporting products to India—from soft drinks and cosmetics to cars and medical devices—will find it easier to sell in the Indian market.
Additionally, British whisky producers will benefit from significant tariff reductions: immediately halved from 150% to 75%, and further reduced to 40% over the next ten years. This gives the UK an advantage over international competitors in reaching the Indian market, the statement added.
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