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- After 14 rounds of intense negotiation over 3 years…India and the UK have signed a Free Trade Agreement on May 6, 2025!
- The trade agreement is projected to increase bilateral trade by £25.5 billion annually starting in 2040.
- Indian professionals are set to benefit from greater access to the UK market.
A Free Trade Agreement is basically when two countries say…
“Let’s do business by reducing or removing tariffs (customs duties) on goods, easing restrictions on services, investments, and people movement. Getting rid of red tape, and visa drama.”
Why does the India -UK FTA matter?
The historic Free Trade Agreement between India and the UK is set to unlock massive potential across key sectors.
- Will boost trade by £25.5 billion every year starting 2040
- UK’s biggest trade deal since Brexit
- More work visas + easier access for Indian professionals
- Cheaper whisky, cars, and more Indian exports
- A big win for India in global trade
According to PM Keir Starmer, this FTA is the UK’s most significant bilateral trade deal since Brexit. This will not only boost trade, but also attract more investment, and create jobs.
Moreover, it builds a strong long-term partnership between the world’s 5th and 6th biggest economies.
PM Narendra Modi also chimed in, saying, the deal would “catalyse trade, investment, growth, job creation, and innovation in both our economies.”
Although the deal has been signed, it still needs approval from both governments before it can take effect.
What’s changing?
Alcohol: Import duties on Whisky & British Gin dropped from 150% to 75%, then 40% in 10 years.
(Indian-made whisky also gets a boost in the UK market)
Textiles: With tariffs eliminated, Indian textile firms are poised to get a large share of the UK market.
Auto Sector: UK premium cars (think Jaguar, Aston Martin) get way more affordable in India — with import duties dropping from 100%+ to just 10%.
IT Sector: The FTA simplifies UK access for Indian IT firms and professionals — potentially benefiting 60,000+ tech professionals each year.
Pharma: Streamlined regulatory approvals for generic drugs will boost Indian pharma exports.
Industrial & Engineering Goods: Indian suppliers are set to benefit from increased UK demand in manufacturing and infrastructure.
Agri & Food: Tariff cuts on tea, spices, and packaged foods will expand market access for Indian brands.
Gems & Jewellery: Exports to the UK are projected to hit $2.5B in two years, potentially doubling bilateral trade in this sector.
Important stats at a glance
- Expected trade boost: £25.5 billion annually from 2040 onwards
- 2024 bilateral trade: £42.6 billion
- Target by 2030: $120 billion
And that’s not all…Work opportunities & easier visas
- The FTA also brings about more work opportunities for Indian professionals — especially in IT and healthcare.
- The UK will offer around 100 additional visas annually so that skilled talent can contribute and thrive overseas.
What it means for you…
Businesses: Easier access to a new market, lower costs on imports/exports.
Startups: Access to UK capital and collaboration in fintech, AI, and sustainability.
Professionals (Finance, IT, Legal): Visa relaxations and work opportunities
- The deal expands mobility pathways for Indian professionals, especially in IT, finance, healthcare, and engineering.
- Around 100 additional skilled worker visas will be made available annually.
- The UK has committed to faster and simplified visa processing for intra-company transfers and independent professionals.
As UK firms get more access to Indian talent and markets, they’ll hire more — either directly or via outsourcing.
Expect more demand in:
- Accounting & Finance
- Audit & Compliance
- Taxation
- Tech & data analytics
Which could translate into higher-paying roles, both in India and abroad!
