India and the United Kingdom Thursday signed the much-awaited landmark Free Trade Agreement (FTA) in the presence of Prime Ministers Narendra Modi and Keir Starmer, during the former’s two-day official visit to the UK.
Addressing the media after the signing ceremony, PM Modi called it a historic day, as “after years of hard work, both nations have completed the Comprehensive Economic and Trade Agreement”.
“For the people and industry of India, products made in the UK – such as medical devices and aerospace parts – will be available at accessible and affordable rates,” PM Modi said, adding, “This agreement will prove particularly beneficial for India’s youth, farmers, fishermen, and MSME sector”.
“A landmark deal with India means jobs, investment and growth here in the UK. It creates thousands of British jobs, unlocks new opportunities for businesses and puts money in the pockets of working people. That’s our Plan for Change in action,” Starmer wrote on X ahead of the signing ceremony.
PM Starmer hosted PM Modi at the historic 16th-century Chequers House, the country house of the UK PM.
The trade deal, which is forecast to boost bilateral trade by £25.5 billion yearly, is both India’s most comprehensive deal ever, and the UK’s most economically significant bilateral trade deal since leaving the EU, he added.
On May 6, PM Modi and Keir Starmer announced the successful conclusion of a mutually beneficial India-UK FTA, after three years of negotiations. The agreement aims to eliminate or reduce tariffs on imports and exports between the two nations. Both nations desire to increase their trade to $120 billion by 2030.
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It is expected to boost key sectors, including textiles, leather, footwear, sports goods and toys, marine products, gems and jewellery, engineering goods, auto parts and engines, and organic chemicals.
“We express our gratitude to Prime Minister Starmer and his government for the strong condemnation of the terrorist attack in Pahalgam,” Modi also said at the press briefing, adding, “We are united in our view that there is no place for double standards in the fight against terrorism.”
The two countries also unveiled a renewed Comprehensive Strategic Partnership – the UK-India Vision 2035 – taking “the relationship to new heights in a time of rapid global change,” Starmer said. The ambitious vision for 2035 will go beyond trade, towards innovation, deepening defence cooperation through a new Defence Industrial roadmap, tackling climate change and nurturing educational connections.
New Delhi will also raise the issue of Khalistani extremism and the return of fugitive economic offenders during Prime Minister Narendra Modi’s two-day official visit to the country. “We also agree that forces with extremist ideologies cannot be allowed to misuse democratic freedoms,” Modi said, in reference to the presence of a section of Khalistani extremist elements in the UK. “Those who misuse democratic freedoms to undermine democracy itself must be held to account,” he added.
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Marking exactly one year since the countries signed the landmark UK-India Technology Security Initiative, the two Prime Ministers also committed to further strengthening national security by harnessing frontier technologies and shaping the technologies of tomorrow.
Twenty-six British companies have announced new business in India. Airbus and Rolls-Royce will soon begin delivering Airbus aircraft – with over half powered by Rolls-Royce engines – to major Indian airlines as part of around £5 million worth of contracts recently agreed, as per a statement from the UK High Commission in New Delhi.
As part of the reinvigorated partnership, the UK and India have also agreed to strengthen cooperation in tackling corruption, serious fraud, organised crime, and irregular migration through enhanced intelligence sharing and operational collaboration, the statement said.
