| Date of Agreement | 6th May 2025 |
| Nature of Agreement | Landmark Free Trade Agreement (FTA) between India and the UK, described as a "historic milestone." |
| Objective | Enhance economic cooperation, eliminate trade barriers, boost investment, and create jobs. |
| Scope | Covers goods, services, investment facilitation, and mobility of professionals. |
| Key Feature: Zero Duty Access | 99% of Indian exports to the UK will enjoy zero customs duty, expected to double bilateral trade, currently valued at $60 billion, by 2030. |
| Tariff Reductions by India | India to reduce or eliminate tariffs on 90% of UK tariff lines, phased over a decade. |
| Key Benefiting Indian Sectors | Textiles, footwear, marine products, leather, sports goods, toys, gems and jewellery, engineering goods, auto parts, and organic chemicals. |
| Benefits for UK Exporters | Major tariff cuts in India for products like whisky, gin, automotive parts, cosmetics, aerospace, lamb, medical devices, electrical machinery, salmon, soft drinks, chocolate, and biscuits. |
| Mobility Provisions | Double Contribution Convention: Indian professionals in the UK exempt from social security contributions for 3 years, reducing costs for IT and service companies. |
| Employment Boost | Expected to create jobs in MSMEs involved in textiles, apparel, footwear, and auto components. |
| Services Sector Integration | Sets groundwork for deeper trade integration in IT, legal, and financial services. |
| Geopolitical Significance | UK's largest deal post-Brexit and India's most ambitious trade pact. |
| Sensitive Sector Protection | India excluded dairy products, apples, and cheese from tariff concessions to protect domestic farmers. |
| Criticism | Opposed by farmers' outfits fearing impact on small agricultural producers and by the Indian alcohol beverage industry over tariff cuts on whisky and gin. |
| Concerns | India is concerned about the UK's Carbon Border Adjustment Mechanism (CBAM) and proposed a 'rebalancing mechanism' to counteract its impact. |
| Path to Agreement | Talks began in January 2022, progressed during the G20 Summit in Rio (November 2024), and concluded in April 2025. Announced on 6th May 2025 after a call between PM Modi and PM Starmer. |
| Next Steps | Expected to be followed by a Bilateral Investment Treaty (BIT) to deepen investment protection and cooperation. |
