India-UK Free Trade Agreement Approved by Indian Cabinet

The Indian Cabinet has officially approved the Free Trade Agreement (FTA) between India and the United Kingdom. According to sources on July 22, the agreement is scheduled to be signed in London on July 24 during Prime Minister Narendra Modi’s visit.

FTA Signing During Modi’s UK Visit

The agreement, formally known as the Comprehensive Economic and Trade Agreement, will be signed during PM Modi’s four-day visit to the United Kingdom and the Maldives starting July 23. Commerce and Industry Minister Piyush Goyal will accompany the Prime Minister.

India and the UK had announced the conclusion of FTA negotiations on May 6.

Key Trade Proposals in the Agreement

The agreement proposes removal of tariffs on labor-intensive exports such as leather, footwear, and textiles. It also includes provisions to make the import of whisky and cars from the UK cheaper for Indian consumers.

The FTA aims to double bilateral trade to $120 billion by 2030. It covers chapters on goods, services, innovation, government procurement, and intellectual property rights.

Implementation and UK Parliament Approval

Once signed, the agreement will still require approval from the British Parliament before it can take effect.

Social Security Agreement Finalized

Both countries have also finalized discussions on a Social Security Agreement (SSA) that will help Indian professionals working in the UK for a limited period avoid double social security contributions.

Investment Treaty Still Under Discussion

Negotiations for a bilateral investment treaty are still ongoing. Once signed and ratified by both countries, it will come into force. FTAs typically eliminate or reduce customs duties on the majority of traded goods and simplify rules for services and investment.

India-UK Trade Statistics

India's exports to the UK grew by 12.6% in FY 2024–25, reaching $14.5 billion. Imports from the UK increased by 2.3%, totaling $8.6 billion.