PM Modi says pact deepen Comprehensive Strategic Partnership
Prime Ministers Narendra Modi and Keir Starmer have announced the successful conclusion of a mutually beneficial India – UK Free Trade Agreement (FTA) which is projected to double the bilateral trade by 2030 from about US$60 billion at present.
This forward-looking Agreement is aligned with India’s vision of Viksit Bharat 2047 and complements the growth aspirations of both the countries, the Commerce and Industry Ministry said on 6 May as Prime Minister Modi welcome the trade pact, concluded at an accelerated pace.
The engagement builds upon the discussions held between the two Prime Ministers on the sidelines of the G-20 Summit in Rio de Janeiro, Brazil, in November 2024, said the Ministry https://www.commerce.gov.in/.
Intense FTA negotiations resumed in February 2025 marked by several engagements between the Commerce and Industry Minister Piyush Goyal and the U.K. Secretary of State Jonathan Reynolds and their teams.
Prime Minister Modi, “These landmark agreements will further deepen our Comprehensive Strategic Partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies http://apeda.gov.in.”
Goyal elaborated, “This Agreement sets a new benchmark for equitable and ambitious trade between two large economies. It will benefit Indian farmers, fishermen, workers, MSMEs, startups and innovators. It brings us closer to our goal of becoming a global economic powerhouse.
“This FTA is not only about goods and services, but also about people, possibilities and prosperity. It protects our core interests while opening doors to India’s greater participation in global value chains.”
The Commerce Secretary Sunil Barthwal emphasised that this FTA is a game changer and will set India further on the path of rapid economic growth and benefit India’s global integration. This is the most comprehensive free trade deal ever entered into by India and will be the gold standard for our future engagements https://fieo.org/.
This comprehensive and forward-looking agreement is the culmination of intense negotiations aimed at deepening trade and investment ties across a range of sectors, including goods, services and technology. It is designed to promote sustainable and inclusive economic growth, ensure resilient supply chains and generate high-quality employment in India.
In an unprecedented achievement, India has secured an exemption for Indian workers who are temporarily in the UK and their employers from paying social security contributions in the UK for a period of three years under the Double Contribution Convention. This will make Indian service providers significantly more competitive in the UK.
The FTA eases mobility for professionals including Contractual Service Suppliers; Business Visitors; Investors; Intra-Corporate Transferees; partners and dependent children of Intra-Corporate Transferees with right to work; and Independent Professionals like yoga instructors, musicians and chefs.
Immense opportunities for talented and skilled Indian youth will open up in the UK which is a major global centre for digitally delivered services due to its strong financial and professional services sectors and advanced digital infrastructure.
India has secured significant commitments on digitally delivered services for Indian service suppliers, especially in professional services such as architecture and engineering, computer related services and telecommunication services.
As two leading democracies and global innovation hubs, India and the UK reaffirm their commitment to strengthening economic cooperation and working together to address global challenges.
The India – UK FTA sets a new benchmark for fair, ambitious, and modern trade agreements worldwide, said the Ministry. Fiinews.com
