India, UK Seal Historic Trade Deal, Unveil Vision 2035 for a Dynamic Future
In a landmark development aimed at redefining bilateral ties, India and the United Kingdom signed a Free Trade Agreement (FTA) on Thursday, projected to enhance two-way trade by £25.5 billion ($34 billion) over time. Alongside this, both nations introduced the India-UK Vision 2035, a forward-looking framework to deepen cooperation across economic, strategic, and technological sectors.
The agreement was formalized during a high-level meeting between Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer at Chequers, the British PM’s countryside retreat. The UK was Modi’s first destination on his two-nation tour, which will also take him to the Maldives as the guest of honour for their Independence Day celebrations on July 26.
Speaking on the occasion, Modi emphasized that his tour focuses on strengthening economic cooperation and promoting peace and stability in the Indian Ocean region. The new FTA, hailed as the UK’s most significant bilateral trade pact post-Brexit, promises to unlock thousands of jobs, boost investments, and offer consumers in both countries access to more affordable goods and services.
According to a UK government readout, the India-UK Vision 2035 renews and elevates the earlier strategic partnership, positioning it for a decade of growth in a rapidly changing world. This vision spans beyond trade, highlighting collaboration in areas such as defence, climate action, border security, education, and innovation.
Under this renewed partnership, both nations have agreed to:
Develop a Defence Industrial Roadmap for joint production and tech collaboration.
Tackle climate change through clean energy investments.
Deepen education ties via new scholarships and academic exchanges.
Enhance intelligence sharing to combat fraud, organised crime, and illegal migration.
Expand the Technology Security Initiative, fostering frontier tech innovation.
Key Trade Highlights:
India will enjoy zero tariffs on 99% of its exports to the UK, covering almost all trade value.
The UK will benefit from reduced tariffs on 90% of its goods, including whisky, automobiles, lamb, and medical devices.
Indian textile and apparel sectors will gain a significant edge over competitors such as Vietnam and Bangladesh.
A social security exemption for Indian workers posted in the UK (for up to 3 years) will ease employment and mobility.
The agreement also spells good news for British businesses. Products like soft drinks, cosmetics, cars, and medical devices will be more competitively priced in Indian markets, thanks to average tariffs dropping from 15% to 3%.
On the business front, 26 UK companies have announced new operations in India. Notably, Airbus and Rolls-Royce are set to deliver new aircraft and engines to Indian airlines under contracts worth £5 million. UK Trade Secretary Jonathan Reynolds, who signed the deal with India’s Piyush Goyal, said that nearly £6 billion in investments and export deals announced during the visit underscore the growing strength of the partnership.
Prime Minister Starmer hailed the deal as a “major win for Britain,” emphasizing its potential to generate jobs and drive growth across the UK.
This ambitious trade pact and Vision 2035 framework mark the beginning of a bold new chapter in India-UK relations, rooted in shared prosperity, security, and innovation.
