India-UK Free Trade Agreement Likely Soon

18-Jul-2025 02:52 PM

New Delhi. A much-awaited Free Trade Agreement (FTA) between India and Britain is expected to be formally signed next week, aimed at strengthening the economic and investment ties between the two countries. The final draft is currently under legal review and the signing process is likely to be completed soon.

Once implemented, the agreement is expected to eliminate import duties on many Indian exports to Britain, including garments, footwear, toys, leather goods, marine products, and jewelry.

In return, India may reduce or eliminate import duties on several British products such as wine, cars, medical devices, cosmetics, chocolates, and soft drinks, making them more affordable in Indian markets. The FTA is anticipated to contribute significantly toward reaching the target of $120 billion in bilateral trade by 2030.

To safeguard domestic interests, India has excluded sensitive agricultural items like apples, cheese, and certain prairie goods from duty concessions.

Britain has also applied similar exclusions. After signing, the agreement will require approval from the British Parliament and the Union Cabinet of India. Its implementation is expected to begin within about a year.

Negotiations for this agreement had been ongoing for more than three years and were officially concluded in May 2025. The Indian Prime Minister has described the FTA as a “historic milestone” in India-UK relations.