India-UK Free Trade Agreement: A Big Score for Bharat’s Economy

What happens when two old friends, bound by history, cricket, and shared democratic values, shake hands over trade? You get a moment that promises to shape the future of both economies—and their people.

That’s exactly what unfolded as India and the United Kingdom signed the much-anticipated Comprehensive Economic and Trade Agreement (CETA). Calling it a “historic day,” Prime Minister Narendra Modi, in his address after the signing, described the deal as a new chapter in India-UK relations—one driven by mutual growth, strategic trust, and economic inclusivity.

A Win Decades in the Making

This Free Trade Agreement didn’t happen overnight. It is the result of years of negotiations, consultations, and mutual trust-building. PM Modi thanked UK’s newly elected Prime Minister Keir Starmer for his warmth and hospitality, and stressed that this agreement is not just about trade—it’s about transformation.

“Today marks a historic day in our relationship. I am delighted that after years of hard work, the Comprehensive Economic and Trade Agreement between India and the United Kingdom has been concluded,” PM Modi said.

Farmers, Youth, and MSMEs Take Center Stage

While FTAs often sound technical and distant to the common citizen, this one has a very human impact. The sectors set to benefit the most are the ones that form the backbone of India—farmers, youth, MSMEs, and small exporters.

With zero duty on key labour-intensive exports like textiles, footwear, gems & jewellery, seafood, and engineering goods, Indian manufacturers will now have significantly more competitive access to the UK market. This is a huge win for India’s rural industries and export community.

India’s processed food and agricultural products, which previously faced up to 70% duty, will now be exported to the UK at zero import duty. That means better prices for Indian produce, improved rural incomes, and wider international exposure for Indian brands.

The UK’s $37.5 billion agriculture market is now within reach for Indian farmers.

For Indian fishermen, the $5.4 billion UK marine market has opened its doors, with import duties on marine products dropping from up to 20% to zero.

India has also ensured full protection for sensitive sectors like dairy, apples, vegetables, cooking oils, and oats, balancing export ambition with domestic security.

Zero Duty = Maximum Opportunity

This FTA eliminates barriers that previously made Indian goods less competitive in UK markets. Here’s what changes immediately:

• Textiles & clothing: Duty drops from up to 12% to zero

• Chemicals: Down from 8% to zero

• Base metals: Down from 10% to zero

• Processed food: Down from 70% to zero

This will boost job creation in India's heartland, especially in states with strong MSME ecosystems like Gujarat, Tamil Nadu, Maharashtra, and Punjab.

Mobility, Talent, and Indian Culture on the Move

The deal goes beyond trade. It touches people’s lives directly. In a major mobility win, up to 1,800 Indian chefs, yoga instructors, and classical musicians can now temporarily work in the UK, bringing Indian culture, cuisine, and wellness to British audiences.

Additionally, 75,000 Indian workers in the UK will benefit from the Double Contribution Convention (DCC). This means no double deduction of social security payments for a period of three years, boosting their take-home salaries and employer savings.

For professionals and service providers, the pathway to working in the UK just got smoother—be it IT professionals, healthcare workers, or skilled consultants.

Vision 2035: A Strategic Future

PM Modi and PM Starmer also agreed to kickstart work on a broader framework called Vision 2035—a long-term roadmap to deepen India-UK ties beyond trade.

“This roadmap will focus on strengthening cooperation in technology, defence, climate, education, and people-to-people ties. It will be a strong, reliable, and ambitious partnership,” said PM Modi.

In essence, this is about building a partnership ready for the next generation—where trade, innovation, sustainability, and strategic trust move hand in hand.

No India-UK narrative is complete without a cricket reference—and PM Modi delivered a masterstroke.

“For both of us, cricket is not just a game, but a passion. And also, a great metaphor for our partnership. There may be a swing and a miss at times, but we always play with a straight bat.”

This statement, while light-hearted, holds deeper meaning. Like cricket, trade requires patience, strategy, and trust in your partner. The India-UK FTA is expected to unlock over $23 billion in trade opportunities, promote economic inclusivity, and deepen mutual respect between two powerful democracies.

This Free Trade Agreement is more than just an economic pact—it's a strategic handshake between the East and the West. It’s a sign that India is no longer just a market; it's a partner, a producer, and a powerhouse.

From startups and MSMEs to farmers and artisans, the gains are tangible. And with Vision 2035, the road ahead looks promising for deeper, more inclusive cooperation between India and the UK.

In an increasingly fragmented world, this partnership might just be the model others look up to.