India and the United Kingdom are on the verge of finalizing a comprehensive Free Trade Agreement (FTA), with 90% of the deal already settled, marking a significant milestone in bilateral economic relations.
The proposed agreement seeks to drastically reduce tariffs on key British exports to India, including whisky, automobiles, and food products, which currently attract import duties as high as 150%. The urgency to finalize the deal has been further accelerated by geopolitical developments, particularly recent U.S. trade tariffs impacting global commerce.
One of the major hurdles—visa regulations and social security contributions for Indian professionals working in the UK—has reportedly been resolved, removing a critical roadblock in the negotiations.
In a significant development, UK Chancellor Rachel Reeves and Indian Finance Minister Nirmala Sitharaman signed £400 million worth of trade and investment agreements. These include:
- Paytm, India’s leading digital payments company, announcing expansion plans in the UK.
- The launch of UK-based neobank Revolut in the Indian market.
Furthermore, India is considering a policy change to allow its domestic companies to list on the London Stock Exchange, a move expected to deepen capital market ties between the two countries.
If finalized, the India-UK FTA could become a landmark agreement, boosting trade, investment, and mobility between two of the world’s most dynamic economies.
