24 July,2025 05:14 PM IST | London | mid-day online correspondent
PMs Keir Starmer and Narendra Modi shake hands at the end of a joint press conference after the signing of the FTA, at Chequers, in Aylesbury, England, on Thursday. PIC/AFP
Lauding the signing of the landmark India-United Kingdom Free Trade Agreement (FTA) on Thursday, Prime Minister (PM) Narendra Modi said that the pact marked a significant milestone in bilateral relations between the two nations.
During a joint press statement with his British counterpart Keir Starmer, PM Modi highlighted the enhanced market access and economic opportunities for both the countries while expressing gratitude for the hospitality he received during his official visit to the country.
"First of all, I would like to express my heartfelt gratitude to Prime Minister Starmer for the warm welcome and gracious hospitality. Today marks a historic day in our bilateral relationship. I am pleased to note that, after many years of hard work, the Comprehensive Economic and Trade Agreement between our two countries has been concluded," PM Modi said.
Earlier in the day, the much-awaited landmark India-UK FTA was signed in the presence of PM Modi and Keir Starmer, providing greater access to goods and services between the two countries. PM Modi is currently on a two-day official visit to the UK.
"This agreement not only paves the way for economic partnership but also serves as a blueprint for our shared prosperity," PM Modi emphasised.
He noted that Indian sectors such as textiles, footwear, gems and jewellery, seafood, engineering goods, agricultural products, and processed foods will gain improved access to the UK market, benefiting youth, farmers, fishermen, and MSMEs from the country.
For the UK, the pact ensures more affordable access to its products, including medical devices and aerospace components, in India, reported ANI.
"On one hand, Indian textiles, footwear, gems and jewellery, seafood, and engineering goods will now have better access to the UK market. Indian agricultural products and processed food industries will also find new opportunities in the UK. This agreement will prove beneficial to the youth, farmers, fishermen, and the MSME sector in India," PM Modi said.
"On the other hand, people and industries in India will be able to access products made in the UK--such as medical devices and aerospace components--at more affordable prices," he further noted.
On May 6, the two PMs had announced the successful conclusion of a mutually beneficial India-UK FTA. The agreement is aligned with India's vision of Viksit Bharat 2047 and complements the growth aspirations of both countries, ANI reported.
The idea behind the trade deal is to eliminate or reduce tariffs on imports and exports between the two countries, making Indian products competitive in the UK and vice versa. Both India and the UK desire to increase their trade to USD 120 billion by 2030.
The FTA is expected to boost key sectors such as textiles, leather, footwear, sports goods and toys, marine products, gems and jewellery, engineering goods, auto parts and engines, and organic chemicals.
"The FTA ensures comprehensive market access for goods, across all sectors, covering all of India's export interests. India will gain from tariff elimination on about 99% of the tariff lines covering almost 100 per cent of the trade value offering huge opportunities for increase in the bilateral trade between India and the UK," India's Commerce and Industry Ministry had said in its release on May 6.
The UK government said India's average tariff on UK products will decline from 15 to 3 per cent under the new trade deal.
A statement by the UK on Thursday asserted that British companies selling products to India -- from soft drinks and cosmetics to cars and medical devices -- will find it easier to sell to the Indian market.
Further, British whisky producers will benefit from the FTA as tariffs will slash immediately from 150 to 75 per cent and then even further to 40 per cent over the next 10 years, giving the UK an advantage over international competitors in reaching the Indian market, the UK statement noted.
(With ANI inputs)
