Prime Minister Narendra Modi and British Prime Minister Keir Starmer on Thursday signed the long-negotiated India–UK Comprehensive Economic and Trade Agreement (FTA) in London, marking a pivotal shift in bilateral trade relations between the two nations.

Negotiations for the FTA, which began three years ago, culminated in an agreement that both governments claim will double bilateral trade to $120 billion by 2030, while granting unprecedented market access for businesses and industries in both countries.

India has secured duty-free access for 99% of its exports, unlocking an estimated $23 billion in potential for labour-intensive sectors such as agriculture, fisheries, textiles, electronics, pharmaceuticals, and chemicals. Commerce Minister Piyush Goyal described the deal as a “big win” for Indian farmers and fisherfolk, with zero-duty export access for 95% of agricultural products and 99% of marine goods.

On the other side, British exporters will benefit from major tariff reductions. Duties on UK-made cars like Jaguar Land Rover and Rolls Royce will drop from 100% to 10%, while tariffs on whisky will decrease from 150% to 75% immediately, and further to 40% within 10 years. The British government expects this to boost luxury exports and attract over €6 billion in investment, creating over 2,200 new jobs.

Prime Minister Modi called the agreement a “blueprint for shared prosperity”, while Starmer hailed it as a “major win for Britain”, promising new opportunities and growth across both nations.

Although the deal is signed, it still requires ratification by both Indian and UK parliaments, with full implementation expected by mid-2026. Industry bodies have expressed optimism but have flagged the need for clarity on local taxation laws and product categories, particularly in India’s alcohol and automotive sectors.

Beyond trade, PM Modi thanked the UK for supporting India over the recent Pahalgam terror attack, affirming that “democratic freedoms must not be exploited by extremist ideologies.”