India, UK Sign Trade Pact, PM Modi Says It Will Deepen Strategic Partnership

India and the UK have signed the long-awaited Free Trade Agreement and the Double Contribution Convention, Prime Minister Narendra Modi has announced. Calling it a "historic milestone", PM Modi, in a post on social media platform X, said it would "further deepen our comprehensive strategic partnership and catalyse trade, investment, growth, job creation, and innovation in both our economies".    

Delighted to speak with my friend PM @Keir_Starmer. In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention. These landmark agreements will further deepen our...

— Narendra Modi (@narendramodi) May 6, 2025

PM Modi, who is in the country amid the stand-off with Pakistan following the terror attack in Pahalgam, had a telephonic conversation with his UK counterpart Sir Keir Starmer and invited him to visit India.

PM Starmer has said that strengthening alliances and reducing trade barriers with economies around the world is part of their plan for change to deliver a stronger and more secure economy, the government said in a statement.

NEWS: The UK and India have agreed a landmark free trade deal to make working people and businesses better off in both our countries 🇬🇧🤝🇮🇳

Delivering on our Plan for Change to grow the economy, raise living standards, and put money back in people's pockets. pic.twitter.com/h88m5SscCH

— UK Prime Minister (@10DowningStreet) May 6, 2025

The conclusion of a "balanced, equitable and ambitious FTA, covering trade in goods and services, is expected to significantly enhance bilateral trade, generate new avenues for employment, raise living standards, and improve the overall well-being of citizens in both countries," the statement read. 

It would also unlock new potential for the two nations to jointly develop products and services for global markets. 

The two nations have been working towards a free trade agreement since the tenure of former Prime Minister Boris Johnson. 

But the process took time as officials worked to iron out several contentious points, including visa issues for Indians, tariff for UK's exports like cars and Scotch whiskey, and the UK's Carbon Border Adjustment Mechanism or CABM -- a tax on carbon-intensive items like steel and fertiliser.