On July 24, 2025, a historic moment unfolded as India and the United Kingdom signed a long-awaited Free Trade Agreement (FTA) during Indian Prime Minister Narendra Modi’s visit to London. This milestone agreement marks a new chapter in the economic partnership between the two nations, unlocking fresh trade routes, collaborative opportunities, and investment potential.
After more than three years of negotiations and several rounds of detailed discussions, the FTA has been finalized to boost bilateral trade, reduce tariffs, attract investments, and strengthen both economic and cultural ties. For India, this is its first major FTA with a European country. For the UK, it represents a vital post-Brexit alliance with one of the world’s fastest-growing economies.
What Does the FTA Include?
The agreement is broad and business-friendly. It targets trade liberalization, regulatory ease, and mutual support across sectors.
Key Highlights:
● Tariff Reductions: Nearly 99% of Indian goods, including textiles, leather, pharma, jewellery, and machinery, will enter the UK duty-free. Likewise, UK exports like whisky, EV components, cosmetics, and dairy will see Indian tariffs slashed from around 15% to 3%.
● Domestic Industry Protection: India retains the right to temporarily raise duties or impose safeguards if imports risk harming local sectors.
● Vehicle Market Access: UK electric and luxury cars will enter the Indian market in phases, starting with yearly quotas and high initial duties, but easing over time.
● Professional & Digital Services: The deal opens doors for accounting, consulting, IT, legal, and tech services to operate more seamlessly across both countries.
● GI Protections: Indian signature products like Darjeeling tea and Kolhapuri chappals will receive official recognition and protection in UK markets.
● Environmental Clause Opt-Out: India negotiated to keep the UK’s Carbon Border Adjustment Mechanism (CBAM) out of the deal, avoiding future tax burdens on Indian exporters.
Why This Agreement Matters
The FTA is expected to:
● Increase annual trade by over £4.8 billion by 2040.
● Attract £6 billion in new investments.
● Support the creation of 2,200 new jobs in the UK.
● Make a wide range of products more affordable for consumers in both countries.
Beyond numbers, the deal strengthens the long-standing relationship between India and the UK, built on shared democratic values, common law traditions, and deep people-to-people connections. With large Indian and British diasporas active in both countries, the FTA also supports cultural and educational exchange.
A Boost for Trade-Friendly Businesses
This agreement is a green light for companies already active—or planning expansion—across India and the UK. The smoother flow of goods and services will benefit exporters, importers, tech innovators, consultants, and manufacturers alike.
Some real-world benefits include:
● Faster exports for Indian apparel and textiles to major UK retailers
● Easier market entry for UK premium brands, especially in beverages, skincare, and automotive
● Simplified professional services delivery across borders in fintech, legal, audit, and IT
● Hybrid production setups across both countries for auto parts, electronics, and high-value components
Shared Growth in a Changing World
In a time when global supply chains are shifting and economies are seeking resilient partnerships, this India-UK FTA offers a strong foundation. It reflects a willingness to collaborate, respect mutual strengths, and build sustainable trade ties.
Both countries bring unique advantages to the table- India with its large workforce, innovation potential, and growing middle class; the UK with its advanced technologies, financial services expertise, and global outlook.
India calls it a “game‑changing” step towards the vision of Viksit Bharat (Developed India), asserting negotiated terms on its own strengths. Meanwhile, the UK describes it as its most significant post‑Brexit trade milestone.
Present Across Borders: Arjun Global’s Unique Edge
As a company with presence in both India and the United Kingdom, Arjun Global stands to witness this transformation up close. With deep ties to local markets and global operations, the company is well-placed to observe and adapt to the trade shifts ahead.
With strong roots in financial services, strategic consulting, and international trade, Arjun Global is well-aligned with the sectors poised to benefit most.
We are also excited to announce our upcoming participation in GIFT City, India’s international financial hub. As global attention shifts toward India’s growing economic clout, especially in the capital and fintech markets, Arjun Global’s dual presence offers new and existing clients direct access to cross-border financial instruments, capital markets, and trade intelligence.
This FTA will help fast-track financial collaborations, attract bilateral investments, and spark innovation in sectors ranging from clean energy and digital commerce to fintech and ESG-focused funds.
(Disclaimer: The content provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Arjun Global does not make any guarantees regarding the accuracy or completeness of the information provided, and shall not be held liable for any losses or damages arising from reliance on the content. Always conduct your own research or consult a qualified financial advisor before making any investment decisions.)
