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COVER STORY AUGUST 01, 2025 | The Indian Eye 4

DEALS WITHOUT BORDERS

INDIA SIGNS

FTAs

As India signs historic Free Trade Agreements with countries like the UK,

the future of a trade deal with the United States remains uncertain.
But New Delhi is moving ahead, redrawing its global trade map sector by sector

OUR BUREAU
London/New Delhi / Male /
Washington, DC

n a landmark moment for bilater-
al ties, Prime Minister Narendra
IModi and UK Prime Minister
Keir Starmer signed the much-antic-
ipated Free Trade Agreement (FTA)
in London on July 24, 2025. The
agreement, hailed as a transformative
step, not only reduces tariffs but also
marks India’s increasing willingness to
liberalize sectors that were previously
off-limits.
Modi described the agreement as
the “foundation stone of a new histo-
ry,” underscoring its importance in en-
hancing trade, investment, and skilled
mobility. Under the FTA, India gains
duty-free access for 99% of its exports
to the UK, including key labor-inten-
sive sectors such as textiles, gems and
jewellery, footwear, and processed
foods. Meanwhile, British exporters
benefit from significant tariff reduc- Prime Minister Narendra Modi shakes hands with Prime Minister of the United Kingdom, Keir Starmer during a bilateral meeting, in London on
tions—especially in alcoholic beverag-
es and luxury automobiles. Thursday. Union Minister of Commerce and Industry Piyush Goyal also present. (Narendra Modi FB/ANI Photo)
The agreement also includes
provisions on digital trade, critical exports to double, while investors like ing more market access, easing rules of India’s textile exports to the UK,
minerals, skills mobility, and govern- Archana Jahagirdar point to opportu- origin, or liberalizing services sectors. already at 6.6% of total UK imports,
ment procurement, while launching nities in climate tech, semiconductors, With the UK, India made a are expected to double. Production
the Vision 2035 roadmap to deepen and digital infrastructure. historic first by reducing duties on hubs like Tirupur, Ludhiana, and Su-
strategic partnerships in defence, edu- large-engine UK-made luxury cars rat stand to benefit immensely, gen-
cation, and sustainable development. OPENING THE GATES under a Tariff Rate Quota (TRQ) sys- erating employment and stimulating
For India, this is not just about boost- tem. It also opened 40,000 high-value local economies. Similarly, in agricul-
ing exports—it is about writing a new he India-UK FTA is part of a government contracts in sectors like ture and marine products, the FTA
trade playbook for a globalized future. broader trend. New Delhi has infrastructure and green energy to unlocks huge markets with zero-duty
Industry leaders across sectors Trecently inked FTAs with the UK firms. In the gems and jewellery access for high-value exports.
hailed the deal as a game-changer. UAE, Australia, and Switzerland, and sector, Indian exports are projected to The leather and footwear sector
From engineering goods to startup is currently negotiating similar deals surge to $2.5 billion within three years, is also poised for a major boost, with
capital, the India-UK FTA promises with the European Union, New Zea- thanks to zero-duty access and India’s Indian exports expected to double to
to catalyze innovation and growth. land, and even the Maldives. Each edge over countries like Thailand, $1 billion. Zero duty on exports makes
Pankaj Chadha of EEPC India expects agreement goes a little deeper—offer- UAE, and Hong Kong. Continued on next page... >>

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