India and the United Kingdom on Wednesday signed a landmark Free Trade Agreement (FTA) expected to boost bilateral trade by $34 billion annually, marking a major milestone in their strategic relationship.

The historic pact was signed during Prime Minister Narendra Modi’s two-day visit to the UK, where he met British Prime Minister Keir Starmer to finalise the long-negotiated agreement. Under the FTA, 99% of Indian exports to the UK—including textiles, gems, and pharmaceuticals—will now enjoy zero tariffs. Similarly, the deal will reduce tariffs on over 90% of British goods, notably premium exports like whisky and automobiles.

“This agreement will double our trade by 2030 and bring real benefits to people and businesses in both countries,” PM Modi said after the signing ceremony.

The FTA, negotiated over three years and 14 rounds of talks, also includes provisions for technology transfer, investment cooperation, and sustainable development.

Experts say the deal will create thousands of jobs, encourage innovation, and enhance market access for small and medium enterprises.

UK Prime Minister Keir Starmer hailed the agreement as a “turning point” in India-UK relations, saying it “cements a new era of economic partnership.”

Beyond trade, both leaders discussed shared priorities in defence, climate, and education. PM Modi is also expected to call on King Charles III during the visit.

This agreement builds on the Comprehensive Strategic Partnership signed in 2021 and signals deeper cooperation between two global democracies.