Following nearly two years of intensive discussions, India and the United Kingdom have officially signed a landmark Free Trade Agreement (FTA) on 24 July 2025—hailed as one of the most significant trade deals of the decade.
With bilateral trade between the two nations projected to reach £25.5 billion, the agreement grants direct, tariff-free access to a broad array of Indian-manufactured goods. It also paves the way for faster, smoother trade exchanges between two global economic heavyweights, offering immediate entry to over 1,000 Indian export categories, including apparel and industrial components (Economic Times).
All of these products will now benefit from zero tariffs. Prior to the agreement, Indian textiles were subject to duties ranging between 10% and 12%, while leather goods faced tariffs as high as 20% (Indian Express). These barriers have now been removed. In parallel, UK exporters stand to gain substantially, with sectors such as electric vehicles and Scotch whisky enjoying streamlined access to India’s rapidly expanding consumer market.
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