India, UK sign Free Trade Agreement; 75k Indians to be exempt from social security payments for 3 yrs
This is being hailed as the largest agreement that Britain has signed since leaving the European Union.
- Jul 24, 2025,
- Updated Jul 24, 2025 3:56 PM IST
Trade and Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynolds signed the landmark free trade agreement (FTA) between India and the UK. The agreement is expected to boost the bilateral trade between the two countries by $34 billion annually.
This is being hailed as the largest agreement that Britain has signed since leaving the European Union. The deal was formalised in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer.
In a tweet, Starmer called the FTA a "landmark deal" and said the agreement would boost job creation and business opportunities in the UK.
"A landmark deal with India means jobs, investment and growth here in the UK. It creates thousands of British jobs, unlocks new opportunities for businesses and puts money in the pockets of working people," he wrote.
Piyush Goyal said that the free trade deal, would unlock opportunities worth around $23 billion for labour-intensive sectors in India. As part of the deal, Indian businesses will get broader access to UK markets by way of reduced tariffs and simplified regulatory compliance.
"Artisans, weavers, and daily-wage labourers employed in several MSMEs across textiles, leather, footwear, gems & jewellery, toys, and marine products will step into a new phase of prosperity. From village looms to tech labs, this FTA marks a historic leap for women through improved access to finance and deeper integration into global value chains," he said in a post on X.
He added that the agreement is also a big win for farmers, ensuring duty-free exports on around 95 per cent of agricultural products. It also benefits Indian fishermen due to zero duty on 99 per cent marine exports from India.
Under the FTA, 75,000 Indian workers would be exempted from UK social security payments for a period of 3 years. Indians working as chefs, yoga instructors, and musicians, as well as business visitors, would benefit from the exemption.
Commenting on the trade deal, Mahindra Group CEO and MD Dr Anish Shah said: “The UK-India Vision 2035 aligns closely with our own strategic priorities, building resilient supply chains, investing in frontier technologies, and fostering a just transition to a low-carbon economy. As Indian industry becomes increasingly global in its footprint and ambition, we look forward to contributing meaningfully to this next chapter of UK-India cooperation. This deal is also a testament to the growing stature of India as a trusted partner and innovation powerhouse in the global order. We commend both governments for their bold leadership in charting a shared future rooted in prosperity, sustainability, and trust.”
Trade and Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynolds signed the landmark free trade agreement (FTA) between India and the UK. The agreement is expected to boost the bilateral trade between the two countries by $34 billion annually.
This is being hailed as the largest agreement that Britain has signed since leaving the European Union. The deal was formalised in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer.
In a tweet, Starmer called the FTA a "landmark deal" and said the agreement would boost job creation and business opportunities in the UK.
"A landmark deal with India means jobs, investment and growth here in the UK. It creates thousands of British jobs, unlocks new opportunities for businesses and puts money in the pockets of working people," he wrote.
Piyush Goyal said that the free trade deal, would unlock opportunities worth around $23 billion for labour-intensive sectors in India. As part of the deal, Indian businesses will get broader access to UK markets by way of reduced tariffs and simplified regulatory compliance.
"Artisans, weavers, and daily-wage labourers employed in several MSMEs across textiles, leather, footwear, gems & jewellery, toys, and marine products will step into a new phase of prosperity. From village looms to tech labs, this FTA marks a historic leap for women through improved access to finance and deeper integration into global value chains," he said in a post on X.
He added that the agreement is also a big win for farmers, ensuring duty-free exports on around 95 per cent of agricultural products. It also benefits Indian fishermen due to zero duty on 99 per cent marine exports from India.
Under the FTA, 75,000 Indian workers would be exempted from UK social security payments for a period of 3 years. Indians working as chefs, yoga instructors, and musicians, as well as business visitors, would benefit from the exemption.
Commenting on the trade deal, Mahindra Group CEO and MD Dr Anish Shah said: “The UK-India Vision 2035 aligns closely with our own strategic priorities, building resilient supply chains, investing in frontier technologies, and fostering a just transition to a low-carbon economy. As Indian industry becomes increasingly global in its footprint and ambition, we look forward to contributing meaningfully to this next chapter of UK-India cooperation. This deal is also a testament to the growing stature of India as a trusted partner and innovation powerhouse in the global order. We commend both governments for their bold leadership in charting a shared future rooted in prosperity, sustainability, and trust.”