India, UK Finalize Historic Free Trade Agreement Boosting Bilateral Trade

India and the United Kingdom have signed a historic Free Trade Agreement (FTA), marking a significant milestone in bilateral relations and global economic integration. Prime Minister Narendra Modi hailed the deal as a reflection of growing global trust in India and emphasized its role in advancing the vision of a developed India and Tamil Nadu, highlighting infrastructure and energy development. The FTA is expected to boost bilateral trade by approximately $34 billion annually, eliminating tariffs on nearly 99% of traded goods and opening numerous opportunities across various sectors including textiles, gems, and technology. UK Prime Minister Keir Starmer and industry leaders, particularly from the Scotch whisky sector, welcomed the agreement for its potential to reduce tariffs and increase exports, forecasting a £4.8 billion boost to the UK economy and significant investment inflows. Business leaders like Sunil Bharti Mittal underscored the deal’s clear roadmap and complementarity, expressing confidence in the goal of doubling bilateral trade and highlighting opportunities for small and medium enterprises and defense collaboration. Additionally, the agreement includes a strategic cooperation framework dubbed 'Vision 2035,' addressing technology, defense, education, and climate partnerships, reinforcing the long-term bilateral relationship beyond trade.