India and UK sign historic free trade agreement to boost bilateral ties and economic growth

India and the United Kingdom on Tuesday officially signed a long-awaited Free Trade Agreement (FTA), marking a major leap forward in the bilateral relationship. The deal was finalised after a telephonic conversation between Prime Minister Narendra Modi and British Prime Minister Keir Starmer, highlighting mutual commitment to deeper economic and strategic collaboration.

Describing the development as a “historic milestone”, Prime Minister Modi said the agreement would unlock new avenues of growth, investment, innovation, and job creation for both countries. He emphasised that this step would further cement the comprehensive strategic partnership between India and the UK, and bring tangible benefits to businesses and citizens on both sides.

The agreement is expected to lower trade barriers, simplify market access, and provide new opportunities across sectors such as manufacturing, technology, green energy, pharmaceuticals, and education. Negotiations for this FTA had been ongoing for years, often delayed due to political changes and complex policy alignment between the two nations.

UK Prime Minister Starmer echoed Modi’s optimism, calling the trade deal a symbol of mutual respect and long-term cooperation. He said both countries share a vision of an open, rules-based international trade system that can foster inclusive development and prosperity.