July 15, 2026 08:06 pm (IST)
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India-UK FTA
Prime Minister Narendra Modi held a bilateral meeting with his UK counterpart Keir Starmer on the sidelines of the G7 Summit, in Evian, France on June 16, 2026.Photo: PIB

India-UK Trade deal goes live: Modi calls it a ‘significant moment’

| @indiablooms | Jul 15, 2026, at 06:04 pm

The UK-India Free Trade Agreement (FTA), described as one of the biggest trade deals of modern times, came into force on Wednesday, with Indian Prime Minister Narendra Modi calling it a "significant moment" in bilateral ties.

"This is a significant moment in the India-United Kingdom partnership!" Modi wrote on X.

"With the coming into force of the Comprehensive Economic and Trade Agreement and the Agreement on Social Security, our economic linkages are going to get even deeper. Together, these agreements translate our shared ambition into tangible opportunities for our people," he said.

Modi said the CETA would give fresh momentum to Indian farmers, entrepreneurs and Micro, Small and Medium Enterprises (MSMEs).

"Several vibrant sectors will gain stronger access to the UK market. It will also deepen cooperation in technology, professional services and innovation, while supporting greater mobility for skilled Indian talent," he said.

Referring to the social security agreement, Modi said it would provide "invaluable support" to Indian professionals working temporarily in the UK while strengthening the competitiveness of Indian enterprises.

"This moment reflects the trust between our democracies and our resolve to build a forward-looking partnership driven by trade, technology, investment and innovation. India and the UK will continue working together for shared prosperity," he said.

The UK and India's total trade, valued at £48 billion in 2025, is expected to receive an immediate boost, with consumers gaining cheaper, quicker and easier access to British and Indian products and services across both countries.

To mark the occasion, a special package of select British goods arrived at the British Deputy High Commission in Mumbai aboard a British Airways flight on Wednesday.

The package was unveiled by Harjinder Kang, His Majesty's Trade Commissioner for South Asia and British Deputy High Commissioner for Western India, and David Wright, British Airways' General Manager in India, signalling the arrival of new opportunities unlocked by the agreement, the British High Commission in India said in a statement.

The package contained UK goods benefiting from reduced tariffs, including cosmetics, food products and alcoholic beverages.

"This is a watershed moment for the UK-India partnership. As the landmark trade deal comes into force, what better than having select British products arriving in one of the very first UK flights into India this morning — with thanks to support from British Airways," Kang said.

"Our landmark trade deal is designed to benefit businesses and consumers from day one with cheaper, quicker and easier trade. We are all excited to take full advantage of it," he added.

David Wright said India remained one of British Airways' most important markets, with the airline operating 63 flights a week between the two countries, a figure set to rise to 70 by the end of summer.

"The UK-India Free Trade Agreement marks a significant milestone in the relationship between the UK and India and reinforces the long-term potential of one of the world's most dynamic international corridors," Wright said.

"We are proud to support this landmark agreement and the opportunities it will create for trade, investment and tourism," he added.

From Wednesday, 99 percent of Indian goods entering the UK and 90 percent of UK goods entering India will either become duty-free or benefit from reduced tariffs.

The agreement is expected to benefit a wide range of sectors on both sides, including automotive, manufacturing, consumer goods, creative industries and medical technology, marking a major milestone in the bilateral economic partnership.

In the long run, the deal is expected to boost bilateral trade by £25.5 billion annually, India's GDP by £5.1 billion and the UK's GDP by £4.8 billion every year, according to the British High Commission in India.

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