India and Britain will sign a Free Trade Agreement (FTA) on Thursday, during Prime Minister Narendra Modi’ s visit to the UK. The agreement will allow duty-free access to Indian textiles, among other goods, while easing duties on certain British items.
After three years of sporadic negotiations, the agreement was reached in May and is expected to increase bilateral trade by lowering many obstacles and giving both nations more access to each other’s markets. It will go into force after being approved by the Indian federal cabinet and the British parliament, which should happen within a year.
Ahead of Modi’s four-day visit to the UK and Maldives, India’s foreign secretary, Vikram Misri, told reporters on Tuesday that the development was a major accomplishment and that the deal’s legal review was almost finished.
Piyush Goyal, Union Minister for Commerce and Industry, will accompany Modi during the formal signing. He will meet with Prime Minister Keir Starmer and talk with business leaders about trade, energy, security, health, and education.
According to Misri, the UK has become India’s sixth-largest investor with total investments of about US $ 36 billion, and bilateral trade between the two countries reached US $ 55 billion in 2023–2024.
Under the trade agreement, according to the Indian Commerce Ministry, 90% of Britain’s tariff lines will see reductions, and 99% of Indian exports to Britain, including textiles, will benefit from zero charges under the agreement. Indian manufacturers are also anticipated to have access to the UK market.
The Federation of Indian Export Organisations’ (FIEO) director general, Ajay Sahai, stated that the UK is an important market for Indian exporters. He also added that the trade agreement will increase bilateral commerce and give Indian industries including textiles, footwear, marine, and engineering items access.
