Tue May 06 13:33:25 UTC 2025: ## India and UK Seal Historic Free Trade Deal

**New Delhi/London, May 6, 2025** – India and the United Kingdom have finalized a landmark Free Trade Agreement (FTA), eliminating tariffs on 99% of Indian exports to the UK. Prime Ministers Narendra Modi and Keir Starmer jointly announced the deal, hailed as the largest ever secured by the UK.

The agreement, reached after several months of negotiations, is projected to significantly boost bilateral trade, currently valued at $60 billion, potentially doubling it by 2030. Indian exports expected to benefit include textiles, marine products, leather, footwear, gems and jewelry, engineering goods, auto parts, and organic chemicals. The UK will also see tariff reductions on a range of goods, including whisky, gin, automotive parts, and cosmetics.

A key feature of the deal is a Double Contribution Convention exempting Indian workers temporarily in the UK from social security contributions for three years. This provision addresses a significant concern for both employers and employees.

While talks began in January 2022, significant progress was made following a meeting between the two Prime Ministers at the G20 Summit in Rio de Janeiro last November. Negotiations resumed in February 2025, culminating in Tuesday’s announcement.

Indian Commerce and Industry Minister Piyush Goyal described the agreement as a new benchmark for equitable trade, emphasizing its benefits for Indian farmers, fishermen, workers, MSMEs, start-ups, and innovators. UK Business and Trade Secretary Jonathan Reynolds echoed the sentiment, highlighting the positive impact on British businesses, workers, and consumers.

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