Published on 6 September 2025 in Client Alerts

India and the United Kingdom sign landmark trade agreement

In July 2025, India and the United Kingdom (the “UK”) signed an historic free trade agreement (“FTA”).  According to the UK Government, the new FTA marks the “biggest and most economically significant new bilateral FTA” since Brexit. 

The FTA was signed on 24 July 2025 at Chequers, the country house of the UK Prime Minister, during a meeting between the Prime Minister Narendra Modi and Prime Minister Keir Starmer.  It followed more than three years of negotiations first commencing in January 2022 and reaching successful conclusion in May 2025. 

Bilateral trade between India and the UK is estimated to be worth nearly USD 56 billion.  According to the UK Government, the new trade deal is expected to result in the creation of more than 2,200 British jobs and to boost the UK’s gross domestic product by GBP 4.8 billion each year.  India’s Government has also hailed the new FTA as facilitating unprecedented market access for Indian goods, with tariff-free access for 99% of India’s exports to the UK.  In recent months, the UK has also concluded a seventh round of negotiations with Switzerland in London, a fifth round of negotiations with the Republic of Korea in Seoul, and a first round of negotiations with Turkey in Ankara on enhanced bilateral free trade agreements.  For its part, India is in the process of pursuing new trade deals with the European Union and the United States.

For further information, please contact info@volterrafietta.com.

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