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Britain and India sign free trade pact during Modi visit
Gulf Today
|July 25, 2025
PMs seal deal in shadow of Trump tariffs; UK and India hope the accord will boost trade between the two countries by £25.5b; it is Britain's biggest trade deal since it left the EU in 2020
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Britain and India signed a free trade agreement on Thursday during a visit by Indian Prime Minister Narendra Modi, sealing a deal to cut tariffs on goods from textiles to whisky and cars and allow more market access for businesses.
Talks on the trade pact were concluded in May after three years of stop-start negotiations, with both sides hastening efforts to clinch a deal in the shadow of tariff turmoil unleashed by US President Donald Trump.
The agreement between the world's fifth and sixth largest economies aims to increase bilateral trade by a further £25.5 billion ($34 billion) by 2040.
It is Britain's biggest trade deal since it left the European Union in 2020 but its impact will be a fraction of the effect of leaving the orbit of its closest trading partner.
It is India’s biggest strategic partnership with an advanced economy, and it could provide a template for a long-mooted deal with the EU and for talks with other regions.
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