The India-UK free trade agreement follows the resumption of negotiations in February after a nine-month hiatus
On Monday, the Prime Ministers of India and the United Kingdom declared the successful completion of a free trade agreement.
A statement from the government said, “Prime Minister Shri Narendra Modi and Prime Minister of the United Kingdom H.E. Sir Keir Starmer had a telephone conversation today. The two leaders welcomed the successful conclusion of an ambitious and mutually beneficial India–UK Free Trade Agreement along with the Double Contribution Convention.”
Prime Minister Narendra Modi took to social media to celebrate the achievement of the India-UK Free Trade Agreement alongside the Double Contribution Convention.
He referred to the deal as a ‘historic milestone’ and expressed eagerness to meet UK PM Keir Starmer in India soon.
After Union commerce minister Piyush Goyal’s visit to London on April 28, both nations had anticipated announcing the conclusion of negotiations on April 29, but discussions were unexpectedly prolonged.
The India-UK free trade agreement follows the resumption of negotiations in February after a nine-month hiatus, gaining importance amid global trade disruptions triggered by US President Donald Trump’s announcement of reciprocal tariffs on trading partners, which are currently on hold until July 9.
India is also pursuing free trade agreements with the US and various other nations. Negotiations with the UK commenced on January 13, 2021, initially progressing swiftly during Prime Minister Boris Johnson’s administration before slowing due to political shifts in London.
However, talks regained momentum after the 14th round resumed in February 2025 with the new government led by Prime Minister Keir Starmer.
Goyal and UK Trade Secretary Jonathan Reynolds announced the restart of negotiations on February 24 after the nine-month break.
Finance Minister Nirmala Sitharaman’s visit to the UK on April 9 further propelled discussions, where she engaged with PM Starmer, Chancellor Rachel Reeves, and Reynolds.
The delays in negotiations were primarily attributed to techno-legal issues related to trade, investment, and social security.
Ultimately, negotiators found solutions that addressed New Delhi’s critical concerns regarding business mobility while accommodating London’s requests for increased market access for automobiles and Scotch whiskies.
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