The agreement, formally referred to as the Comprehensive Economic and Trade Agreement, is scheduled to be signed in London on July 24 during PM Modi’s visit to the United Kingdom
PM Modi has met UK Prime Minister Sir Keir Starmer twice over the past year. They met on the sidelines of the G20 Summit in Brazil in November 2024. File Pic/X
The Union Cabinet on Tuesday approved the India-UK Free Trade Agreement (FTA), government sources said, reported the PTI.
The agreement, formally referred to as the Comprehensive Economic and Trade Agreement, is scheduled to be signed in London on July 24 during Prime Minister Narendra Modi’s visit to the United Kingdom, according to the PTI.
PM Modi will begin his four-day visit to the UK and the Maldives on Wednesday, and will be accompanied by Commerce and Industry Minister Piyush Goyal.
India and the UK had announced the conclusion of negotiations on the trade pact on 6 May. The deal aims to eliminate tariffs on Indian exports of labour-intensive goods such as leather, footwear, and textiles, while reducing import duties on British products such as whisky and automobiles.
The agreement is expected to double bilateral trade between the two countries to USD 120 billion by 2030.
The FTA includes chapters on goods, services, innovation, intellectual property rights, and government procurement. Typically, the Commerce Ministers of both nations formally sign such trade agreements.
Following the signing ceremony, the FTA must be ratified by the British Parliament before coming into effect.
In addition to the FTA, both countries have finalised a social security agreement, known as the Double Contribution Convention, which will help Indian professionals working short-term in the UK avoid double contributions to social security funds.
However, negotiations are still ongoing for the Bilateral Investment Treaty (BIT).
Trade agreements like this typically involve reducing or eliminating customs duties on a wide range of goods, while also simplifying rules to promote services trade and investment between the two countries.
According to trade data, India’s exports to the UK increased by 12.6 per cent to USD 14.5 billion, while imports rose by 2.3 per cent to USD 8.6 billion in 2024–25. Total bilateral trade reached USD 21.34 billion in 2023-24, up from USD 20.36 billion the previous year.
New Delhi and London have seen sustained and frequent high-level political engagements. Prime Minister Modi has met UK Prime Minister Sir Keir Starmer twice over the past year. They met on the sidelines of the G20 Summit in Brazil in November 2024 and again during the G7 Summit in June 2025. Both also had multiple telephonic conversations over the period.
(with PTI inputs)
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