India, UK sign historic Free Trade Agreement, agriculture sector to benefit the most; Know key details
PTC News Desk: The United Kingdom and India have signed the historic Free Trade Agreement on Thursday during Prime Minister Narendra Modi's visit to the UK. Prime Minister Narendra Modi met Prime Minister of the UK, Keir Starmer, in London.
Commerce Minister Piyush Goyal and British Trade Minister Jonathan Reynolds inked the pact in the presence of Prime Minister Narendra Modi and his UK counterpart Keir Starmer.
“India has ensured that non-tariff barriers are suitably addressed to ensure free flow of goods and services and that they do not create unjustified restrictions to India’s exports," the statement added.
The development comes as PM Modi is on a two day visit to the United Kingdom. The visit is aimed at strengthening bilateral ties in key sectors such as defence, agriculture, trade and technology. The trade is expected to pave way for economic growth and job creation, particularly for India's youth.
The Indian agriculture sector will benefit the most from the free trade agreement as agriculture produce and processed foods sector will now have duty-free access to the British market.
Indian farm products such as turmeric, pepper and cardamom, and processed products like mango pulp, pickles, and pulses, will get duty-free access under the new pact. This would boost farmers' market reach and provide them with bigger profit margins.
India and the UK sign the Comprehensive Economic and Trade Agreement in London, in the presence of Union Minister of Commerce & Industry Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds.#IndiaUKFTA
(Pics: ANI/DD News) pic.twitter.com/qThofME2yf — ANI (@ANI) July 24, 2025
How FTA will benefit India ?
The long standing agreement is expected to boost the export of labour-intensive items such as gems, jewellery, textiles, marine products, leather, footwear, sports goods and toys. According to a statement by the commerce ministry, other key exports like engineering goods, auto parts and engines and organic chemicals are also expected to get a boost.
The pact also includes tariff concession for Indian tea, spices, and ready-to-eat products that will improve market access.
Another substantial benefit of the deal is the introduction os social security arrangement that exempts Indian employees in the UK from paying into the British social security system for up to three years. The move is expected to save Indian businesses Rs 4,000 crore annually.
Additionally in a major boost to India's service industry, the deal will also fecilitate entry of Indian professional and contract-based workers into the UK job market.
- With inputs from agencies
