India and the United Kingdom have officially signed a historic Free Trade Agreement (FTA) on Thursday, aimed at significantly enhancing market access and driving a surge in bilateral trade by an estimated $34 billion per year, according to the British government.
The agreement, described as the UK’s most economically significant bilateral trade pact since Brexit, was finalised in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer.
Officials from both sides said the FTA would reduce tariffs, enhance investment flows, and open new avenues in sectors such as pharmaceuticals, financial services, textiles, and renewable energy. The deal comes after years of negotiations and is expected to create jobs, spur innovation, and strengthen geopolitical ties between the two nations.
More details of the agreement, including sector-wise impact and implementation timelines, are expected to be released in the joint press statement later today.
