India-UK Free Trade Agreement Nears the Finish Line: A New Era of Bilateral Prosperity

After years of negotiations, the much-anticipated India-UK Free Trade Agreement (FTA) appears to be entering its final lap with optimism building on both sides of the negotiating table.

Commerce and Industry Minister Piyush Goyal’s recent visit to London has ignited renewed momentum in talks, as reported by trade experts and government stakeholders alike. With nearly all 26 chapters of the agreement closed, only a few final hurdles remain, mostly surrounding tax-related issues. Still, confidence is high that a historic deal will soon be announced.

The Significance

Last year alone, India and the UK enjoyed a trading relationship worth £42 billion, supporting over 600,000 jobs. More striking is the fact that India has now become the UK’s fastest-growing export market for services, boasting a 260% rise in the last decade. For two economies rich in innovation, talent, and entrepreneurial spirit, an FTA represents far more than trade it’s a strategic alignment for shared growth in an increasingly volatile global economy.

The recent “Indian Century” dinner hosted by the Lord Mayor of London at Mansion House was emblematic of this growing partnership. Celebrating cultural ties and economic synergy, the event was filled with optimism about the FTA’s potential to double bilateral trade to £80 billion within the next five years.

Lord Karan Bilimoria, a long-time advocate of closer India-UK ties, echoed this sentiment: “All the indications I'm getting are that [the trade deal] will be very soon. I have a feeling it is imminent.”

For India, key asks include smoother mobility for its skilled professionals and stronger provisions around tax fairness for expatriates. From the UK’s perspective, lowering India’s high tariffs on products like Scotch whisky (currently at 150%) and automobiles (100%) is central to its goals. A reduction in these duties would significantly enhance market access and benefit consumers on both sides.

The enthusiasm around digital trade is particularly promising. With India being a digital-first economy and the UK leading in global financial services, a well-structured digital trade framework could drive collaboration across fintech, cybersecurity, AI, and e-commerce. Such synergy could position both countries at the forefront of a digital global economy.

The FTA also represents a broader commitment to upholding a rules-based multilateral trading system, something both nations are keen to champion amidst rising global protectionism.

Looking Forward

As the final details are ironed out, this agreement stands not just as a trade document but as a symbol of mutual trust and ambition. It reflects a pivot toward deeper economic integration and people-to-people connectivity that will define India-UK relations for decades to come.

If all goes to plan, the next time Piyush Goyal visits London, it may be to sign one of the most transformative trade agreements in modern UK-India history.