♦ India and the United Kingdom have officially signed a landmark Free Trade Agreement (FTA) on 6 May 2025, that promises to reshape the future of bilateral trade, create new employment opportunities, and strengthen India’s integration with global markets.

♦ Under the agreement, India will reduce duties on British exports such as Scotch whisky and premium automobiles by up to 90 per cent, making these goods more accessible to Indian consumers.

♦ In exchange, the UK will eliminate tariffs on Indian textile imports, a move that could lower prices for British consumers and enhance the competitiveness of Indian exporters.

♦ Concluded after more than three years of negotiations, the deal is expected to boost the UK economy by up to Euro 5 billion annually and significantly expand trade and investment between the two nations.

♦ Bilateral trade between India and the United Kingdom rose to USD 21.34 billion in 2023-24, up from USD 20.36 billion the previous year.

♦ Currently, goods imported from India into the UK attract an average tariff of 4.2 percent.