India-UK Sign Landmark Free Trade Agreement: In a significant milestone for global trade, India and the United Kingdom have successfully signed a long-awaited Free Trade Agreement (FTA), marking a new chapter in bilateral relations between the two major economies. The deal, described as a “milestone” by India’s External Affairs Minister S. Jaishankar, was finalized last month and formally discussed during the recent two-day visit to New Delhi by Britain’s new Foreign Secretary, David Lammy.
India-UK Sign Landmark Free Trade Agreement
In a significant milestone for global trade, India and the United Kingdom have successfully signed a long-awaited Free Trade Agreement (FTA), marking a new chapter in bilateral relations between the two major economies. The deal, described as a “milestone” by India’s External Affairs Minister S. Jaishankar, was finalized last month and formally discussed during the recent two-day visit to New Delhi by Britain’s new Foreign Secretary, David Lammy.
The agreement, which comes after years of negotiations, is poised to eliminate or significantly reduce tariffs on a wide range of goods exchanged between the two countries. As part of the deal, India has agreed to slash tariffs on several key British exports including whiskey, cosmetics, and medical devices—sectors where the UK holds considerable strength. In return, Britain will reduce duties on popular Indian products such as clothing, footwear, and food items including frozen prawns.
Jaishankar emphasized that this agreement will not only deepen trade and investment ties but also strengthen supply chains and other strategic areas of cooperation. He pointed out that India and the UK, currently the world’s fourth and sixth largest economies respectively, already enjoy a trade relationship valued at over $53 billion. This trade supports more than 600,000 jobs across both nations.
Beyond commerce, the agreement is also expected to elevate collaboration in advanced and strategic sectors. Jaishankar highlighted the progress of the Technology Security Initiative—an India-UK framework aimed at fostering deeper cooperation in critical domains such as artificial intelligence, semiconductors, telecommunications, quantum computing, health technology, biotechnology, critical minerals, and advanced manufacturing materials.
The FTA is projected to boost bilateral trade by nearly $35 billion, offering a much-needed economic lift particularly for post-Brexit Britain as it seeks new global trade partners. Foreign Secretary David Lammy called the agreement “just the start” of Britain’s broader ambitions in international commerce, signaling potential future pacts in other sectors.
A particularly exciting outcome for Indian consumers is the expected sharp reduction in prices of luxury cars. Currently, India imposes a staggering 100–110% import duty on foreign-made vehicles, making luxury models like Range Rover, Defender, and Mercedes-Benz extremely expensive. Under the new FTA, these duties are set to be substantially reduced, with prices likely to drop by as much as 50–60%. This could bring premium vehicles within reach of a broader consumer base in India and significantly boost the luxury automobile market
On the diplomatic front, Jaishankar also expressed gratitude to the UK government for its strong condemnation of the recent terrorist attack in Palam, Jammu and Kashmir. He reiterated India’s firm stance on terrorism, stating, “We practice a policy of zero tolerance against terrorism and expect our partners to understand it.”
S Jaishankar tweeted: “Glad to meet UK Foreign Secretary DavidLammy today in Delhi. Appreciate UK’s strong condemnation of the terrorist attack on Pahalgam and support in combatting terrorism. Our conversation focused on the significant strides being made by theComprehensive Strategic Partnership. Agreed that as our collaboration continues to grow, new opportunities emerge. Also discussed global and regional issues as also cooperation in multilateral fora.”
This new trade agreement not only enhances economic ties but also reflects growing geopolitical alignment and mutual strategic interests between the two nations. As both sides look ahead, this FTA stands as a foundation for broader cooperation in security, technology, and diplomacy.
Disclaimer:
The information presented in this article is based on recent reports and official statements regarding the India-UK Free Trade Agreement. While efforts have been made to ensure accuracy, some aspects of the agreement, including tariff reductions and their direct impact on product pricing such as luxury cars, are subject to final implementation details and regulatory approvals. Readers are advised to consult official government releases or trade authorities for precise and updated information.