PM announces free trade pact with UK; bilateral trade to double by 2030
This story was originally published at 21:13 IST on 6 May 2025
Register to read our real-time news.Informist, Tuesday, May 6, 2025
Please click here to read all liners published on this story
--PM Modi: Look forward to welcoming UK PM Keir Starmer to India soon
--PM Modi: India, UK successfully concluded mutually beneficial FTA
--UK: FTA with India to increase bilateral trade by 25.5 bln pound sterling
--UK: India to cut tariff on automotives to 10% from 100% under FTA quota
--UK: India to cut tariff on whisky, gin to 75% from 150%; to 40% in 10 yrs
--UK govt: India to cut duty on 85% tariff lines under FTA in 10 years
--UK govt: India to cut duty on whisky, cosmetics, medical devices under FTA
--UK govt: India to cut duty on 90% tariff lines as per FTA
--Govt: UK to address all non-tariff barriers on Indian good, svcs under FTA
--Govt: FTA with UK to help double bilateral trade by 2030
--Govt: UK to cut duty on 99% tariff lines under FTA with India
NEW DELHI – India and the UK have successfully concluded a mutually beneficial free trade agreement, Prime Minister Narendra Modi said Tuesday after speaking to the UK's Prime Minister Keir Starmer. "In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial free trade agreement, along with a Double Contribution Convention," Modi said on the social media platform X.
The prime minister said "these landmark agreements will further deepen our Comprehensive Strategic Partnership and catalyse trade, investment, growth, job creation, and innovation in both our economies." He added, "I look forward to welcoming PM Starmer to India soon."
The two countries have been negotiating the trade pact since 2022. Under the deal, the UK will cut duties on 99% tariff lines, India's commerce ministry said. London will also address all non-tariff barriers to ensure free flow of goods and services.
India, on its part, will slash duty on 90% tariff lines, the British government said. Within the next 10 years, India will make 85% tariff lines duty-free.
The agreement with the UK is likely to help double bilateral trade by 2030, New Delhi said. London expects the bilateral trade to surge to 25.5 billion pound sterling, or about $34.14 billion, in the long run. The two sides had bilateral trade of $18.64 billion in Apr-Jan, as per the latest data available with India's government.
Under the pact, New Delhi will first cut the duty on whisky and gin to 75% from 150% and then bring it down to 40% by 2035. "Automotive tariffs will go from over 100% to 10% under a quota," the British government said in a release. "Other goods with reduced tariffs, which can open markets and make trade cheaper for businesses and Indian consumers, include cosmetics, aerospace, lamb, medical devices, salmon, electrical machinery, soft drinks, chocolate, and biscuits."
Along with the trade deal, India and the UK have sealed a Double Contribution Convention agreement. Under this, Indian workers in the UK and their employers are exempted from paying social security contributions in the UK for three years. "This will make Indian service providers significantly more competitive in the UK," New Delhi said.
"We are now in a new era for trade and the economy," the UK government said, quoting Starmer. "That means going further and faster to strengthen the UK's economy, putting more money in working people's pockets." End
US$1 = INR 84.43
Reported by Krity Ambey and Kuldeep Singh
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
