In a historic move, India and the United Kingdom signed a Free Trade Agreement (FTA) on Thursday during Prime Minister Narendra Modi’s two-day visit to the UK. The agreement, witnessed by PM Modi and UK PM Keir Starmer, aims to double bilateral trade to $120 billion by 2030.

Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynolds formalized the deal, which now awaits ratification from the British Parliament—expected to take up to a year.

The FTA provides duty-free access to 99% of Indian exports to the UK and drastically reduces tariffs on key sectors. For India, this includes labour-intensive products like textiles, leather, footwear, and marine goods. UK exporters will benefit from reduced tariffs on whisky (from 150% to 75%, and to 40% over 10 years), cars (down from 100% to 10% under quotas), and various consumer products such as chocolates, cosmetics, and medical equipment.

India’s agriculture sector is set to gain significantly, with easier access for mangoes, tea, grapes, seafood, and spices to the British market.

The services chapter allows smoother movement for professionals like chefs, musicians, yoga instructors, investors, and intra-corporate transferees, with family members granted work rights. The agreement also includes mutual recognition in government procurement, innovation, and intellectual property.

Additionally, India and the UK concluded discussions on a Social Security Agreement, sparing Indian professionals working temporarily in the UK from double social security contributions.

This comprehensive trade pact is expected to create new opportunities across industries and deepen India-UK economic ties.