On May 6, 2025, India and the United Kingdom concluded a comprehensive Free Trade Agreement (FTA) after over three years of negotiations. This historic deal aims to significantly boost bilateral trade and strengthen economic ties between the two nations.

Key Highlights:

• Economic Impact: The FTA is projected to increase annual bilateral trade by £25.5 billion ($34 billion) by 2040, adding £4.8 billion annually to the UK economy and boosting wages by £2.2 billion each year. 
• Tariff Reductions: The agreement includes tariff cuts on 90% of UK goods exported to India, with 85% of these becoming fully tariff-free within a decade. Key sectors benefiting include whisky, automotive, and electronics. 
• Services and Procurement: The deal enhances access for UK service providers in sectors like legal, financial, and digital services, and opens Indian public procurement markets to UK businesses. 
• Mobility Provisions: The FTA introduces streamlined visa processes for professionals, facilitating greater workforce mobility between the two countries. 
• Implementation Timeline: The agreement comprises 26 chapters and is expected to undergo legal review and ratification processes, aiming for full implementation within approximately 15 months.