United Kingdom and India Ink Trade Agreement; Prime Minister Modi Declares It Bolsters Strategic Alliance
India-UK Secures Long Awaited Trade Pact and Double Contribution Convention
May 6, 2025
India and the UK have succesfully inked a groundbreaking Free Trade Agreement (FTA) and Double Contribution Convention, as announced by Prime Minister Narendra Modi on social media platform X. The PM called it a "monumental stride," asserting that it would bolster their wide-ranging strategic partnership and spur trade, investment, jobs, and innovation in both nations' economies.
PM Modi and UK counterpart Sir Keir Starmer held a phone conversation, during which the latter was extended an invitation to visit India. PM Starmer's government stated that strengthening alliances and reducing trade barriers with globe-trotting economies is a crucial aspect of their plan for change to foster a robust and secure economy.
The resilient duo has agreed upon an ambitious and advantageous FTA, which will considerably expand bilateral trade, forge new employment opportunities, enhance people's living standards, and elevate overall well-being. The FTA covers diverse sectors such as minerals, chemicals, gems and jewellery, textiles, machinery, processed foods, automobiles, whisky, gin, cosmetics, aerospace parts, medical devices, salmon, electrical machinery, chocolates, biscuits, soft drinks, and more.
In addition, the FTA will facilitate the exchange of services, most notably IT/ITeS, financial, professional, and educational services. The deal will expand the UK's visa pathways to integrate Indian chefs, musicians, yogis, and other professionals. A Double Contribution Convention Agreement safeguards Indian professionals working in the UK temporarily from double social security or national insurance contributions.
The FTA's conclusion marks an end to years of negotiations that commenced during former PM Boris Johnson's tenure. Contentious elements such as visa issues for Indians, duties on UK's exports like cars and Scotch whiskey, and the UK's Carbon Border Adjustment Mechanism (CABM) were addressed meticulously throughout the process.
In 2024-2025, bilateral trade surged to $21.34 billion from $20.36 billion the previous year. The UK anticipates the FTA to boost annual bilateral trade by $34 billion by 2040; some estimates predict trade could double or even triple over the next decade.
Quoting PM Modi, "These landmark agreements will further deepen our comprehensive strategic partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies."
- The Free Trade Agreement (FTA) between India and the UK, as announced by Prime Minister Narendra Modi, is expected to double the contributions of both nations' economies.
- As part of the newly signed FTA, the UK has agreed to expand its visa pathways to integrate Indian professionals in various fields, such as chefs, musicians, yogis, and others.
- The FTA and Double Contribution Convention have been meticulously negotiated, resolving contentious issues like visa issues for Indians and duties on UK exports like cars and Scotch whiskey.
- The FTA will significantly increase bilateral trade, creating new job opportunities and improving living standards in both India and the UK.
- In politics, business, and general news, the successful signing of the FTA and Double Contribution Convention has been praised as a "monumental stride" that strengthens the strategic partnership between the two nations.
- The UK government sees the part of fostering alliances and reducing trade barriers with economies like India as a crucial aspect of their plan for a robust and secure economy.
