tl;dr
Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer have announced the finalization of the India-UK Free Trade Agreement (FTA), aimed at reducing costs, simplifying trade, and boosting digital trade, innovation, and emerging technologies. The deal supports India's Viksit Bharat 20...
India and the UK have finalized a landmark Free Trade Agreement (FTA) aimed at reducing digital trade barriers, fostering innovation, and expanding cooperation in emerging technologies. This strategic deal supports India's Viksit Bharat 2047 vision and is expected to enhance trade in key service sectors such as IT, fintech, telecommunications, and construction.
Crucially, the FTA introduces a Double Contribution Convention (DCC), allowing workers moving between the two countries to pay social security contributions in only one country at a time. This measure will boost the competitiveness of Indian service providers in the UK market and facilitate cross-border labor mobility.
The agreement is projected to significantly increase bilateral trade, raise GDP and wages in the UK, and create new opportunities for Indian youth within the UK's digital and professional services sectors. It incorporates provisions for the legal recognition of electronic contracts, protections for online consumers, and data flow agreements without compromising data privacy standards.
Financial services cooperation will be bolstered through non-discrimination provisions, transparency commitments, and collaboration on fintech innovation and regulatory approaches. The telecommunications sector will also benefit from improved market access, network security collaboration, and transparent allocation of critical resources like spectrum and radio frequencies.
Additionally, the FTA streamlines customs procedures, reduces technical trade barriers, and provides dedicated support for small and medium-sized enterprises (SMEs) aiming to expand into India. The deal reflects the growing economic partnership between the two countries, recognizing India’s rapid economic growth and its position as the UK's 12th largest trading partner.
The deal, described as ambitious and comprehensive, is expected to double bilateral trade by 2030 and stimulate inclusive growth and job creation. It sets a new benchmark for trade cooperation between two of the world's major economies, emphasizing not only goods and services but also people-to-people connections, innovation, and prosperity.
Leaders from both countries, including Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, hailed the agreement as a historic milestone, reinforcing a comprehensive strategic partnership that promises benefits across industries such as agriculture, manufacturing, healthcare, and clean energy.
This FTA ushers in a future-ready framework supporting digital economy growth, stronger supply chains, and enhanced collaboration on emerging technologies, while safeguarding high standards for data protection and consumer rights. Overall, it stands as a catalyst for accelerated trade, investment, and innovation between India and the United Kingdom.