In a landmark moment that is set to reshape the trajectory of economic collaboration between two major democracies, India and the United Kingdom have officially signed the much-anticipated Free Trade Agreement (FTA). Sealed at Chequers the British Prime Minister’s official country residence the agreement was witnessed by Prime Minister Narendra Modi and his UK counterpart Keir Starmer. The FTA is projected to double bilateral trade from the current $60 billion to $120 billion by 2030.
This landmark deal has been hailed as a strategic breakthrough, promising a new era of cooperation across vital sectors like defence, climate change, migration, digital innovation, and green energy. The UK government has forecasted that the pact will improve market access and boost bilateral trade by $34 billion annually. With major tariff cuts and better access for Indian goods like textiles, footwear, seafood, and gems, the FTA is poised to be India’s most significant trade deal in over a decade.
PM Modi: ‘A Historic Day in Our Relations’
Speaking at the signing ceremony, PM Modi called the FTA a transformative moment in the India-UK partnership. “Today marks a historic day in our relations. After years of negotiations and hard work, we have completed a Comprehensive Economic and Trade Agreement,” he said.
He underscored the multi-sectoral impact of the FTA, saying, “This Agreement is not just an economic agreement but a roadmap for shared prosperity.” PM Modi elaborated that the agreement would benefit sectors including Indian textiles, engineering goods, gems and jewellery, seafood, and MSMEs, giving them significantly better access to the UK market.
“On the other side, the people of India will benefit from more affordable access to UK-made products such as medical devices. This deal will boost job creation, empower farmers, help fishermen, and unlock opportunities for Indian youth,” the Prime Minister added. The presence of senior leaders including Union Commerce Minister Piyush Goyal and UK Secretary of State for Business Jonathan Reynolds reinforced the importance of this milestone.
Extremists Who Misuse Democratic Freedoms Must Be Held Accountable
During a joint press conference with UK PM Keir Starmer, Prime Minister Modi made strong remarks against extremist ideologies misusing democratic spaces. “There is no place for double standards when it comes to terrorism. Those who misuse democratic freedoms to undermine democracy itself must be held accountable,” he stated firmly.
PM Modi also expressed his gratitude to the UK government for its swift condemnation of the recent terrorist attack in Pahalgam, adding, “We appreciate the support of the UK in standing against terrorism in all forms.”
By addressing extremism on an international platform, both leaders sent a clear message: democracies must remain vigilant and united in combating forces that exploit freedom for violence and disruption.
‘Most Significant Deal Since Brexit’: PM Keir Starmer
British Prime Minister Keir Starmer called the India-UK FTA the most significant trade pact since the United Kingdom’s exit from the European Union. He lauded the agreement as a “major win” for economic growth and job creation.
“India is a natural partner in a changing world. This deal boosts wages, raises living standards, and puts more money in the pockets of working people in both our countries,” Starmer said. He also revealed that nearly GBP 6 billion in new investments and export deals have been finalized, with Indian firms expanding their footprint in the UK and vice versa.
Starmer praised India’s rapidly growing middle class and its potential as a key market for British exporters—especially in premium consumer goods, financial services, and pharmaceuticals. “This is a comprehensive trade deal, perhaps the most ambitious India has ever signed,” Starmer emphasized. “It sends a powerful message that the UK is open for business.”
Strengthening Economic Ties and Legal Cooperation
As part of his UK visit, PM Modi also touched on cooperation in law enforcement, particularly on the issue of extradition of economic offenders. He said Indian agencies will continue to deepen coordination with foreign counterparts to ensure fugitives like Vijay Mallya, Nirav Modi, and Sanjay Bhandari are brought to justice.
The PM’s remarks came against the backdrop of ongoing extradition proceedings in British courts involving high-profile financial offenders. In Parliament earlier, Finance Minister Nirmala Sitharaman had noted that over ₹14,000 crore worth of assets had already been restituted through the sale of properties linked to Vijay Mallya.
A New Chapter in Global Diplomacy and Trade
The signing of the India-UK Free Trade Agreement is not just a commercial milestone—it is a diplomatic triumph reflecting the mutual respect and shared democratic values of two great nations. With the launch of the UK-India Vision 2035, both countries are set to deepen cooperation in key areas such as green technology, education, defence, and innovation.
As PM Modi now travels to the Maldives to participate in the island nation’s 60th Independence Day celebrations, the successful UK leg of his tour stands as a powerful statement of India’s rising global stature. The FTA is more than a contract it is a blueprint for a stronger, fairer, and more interconnected global future.
