Britain and India sign free trade agreement to boost bilateral trade

Published 24/07/2025, 13:14
© Reuters.

Investing.com -- Britain and India signed a free trade agreement on Thursday during Indian Prime Minister Narendra Modi’s visit.

The deal aims to cut tariffs on goods ranging from textiles to whisky and cars, while expanding market access for businesses.

British Prime Minister Keir Starmer highlighted the "huge benefits" the agreement would bring to both nations by making trade "cheaper, quicker and easier."

"We’ve entered a new global era, and that is one that requires us to step up, not to stand aside... by building deeper partnerships and alliances," Starmer said.

Modi noted that the visit would "go a long way in advancing the economic partnership between our nations."

The leaders also established a partnership covering defense and climate issues, along with strengthened cooperation on tackling crime.

The deal, concluded in May after three years of negotiations, is expected to increase bilateral trade by an additional £25.5 billion ($34 billion) by 2040.

The agreement is expected to take effect following ratification, likely within a year.

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