What happened?
On July 24, India and the United Kingdom signed a long-awaited Free Trade Agreement (FTA) on Thursday, aimed at boosting annual bilateral trade by an estimated USD 34 billion. The agreement was signed by Commerce Minister Piyush Goyal and UK Secretary of State Jonathan Reynolds in the presence of Prime Ministers Narendra Modi and Keir Starmer. The deal removes or reduces tariffs on 99% of Indian exports and facilitates British exports—especially whisky, automobiles, cosmetics, and medical devices—through a phased reduction of average tariffs from 15% to 3%.
Why it matters for India
Concluded after three years of negotiations, the FTA provides near-complete tariff elimination across product categories representing nearly all bilateral trade. The UK expects enhanced market access for high-value goods, while Indian exporters gain from simplified and cheaper access to the UK market. Officials from both sides hailed the agreement as a strategic and economic milestone in deepening bilateral ties.