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UK FTA Shows World’s Trust in India: PM Modi
Prime Minister Narendra Modi has hailed the recently signed Free Trade Agreement (FTA) between India and the United Kingdom as a symbol of the growing global confidence in India’s economic leadership. Speaking during a public event in Tamil Nadu, Modi said the deal reflects India’s capability to lead on the global stage and aligns with the national vision of a developed Viksit Bharat. He also highlighted how the agreement would benefit local industries, including MSMEs and exporters from states like Tamil Nadu.
Agreement Signed During UK Visit
The India–UK FTA was signed on July 24 during Modi’s state visit to the United Kingdom. It was finalized in the presence of Prime Minister Modi and UK Prime Minister Keir Starmer. The pact is the first of its kind between India and a European nation and is seen as India’s most comprehensive trade agreement in recent years. The FTA covers critical areas such as goods, services, investment, digital trade, and intellectual property rights.
Economic Benefits for Both Nations
The agreement ensures that nearly 99% of Indian exports to the UK—including textiles, gems, seafood, and machinery—will enjoy zero tariffs. In return, the UK will gradually reduce duties on products such as automobiles, alcohol, and processed foods. Experts estimate the FTA could boost bilateral trade by over £25 billion by 2040 and significantly improve market access for both sides.
Boost for Tamil Nadu and Coastal Economies
Modi noted that Tamil Nadu stands to benefit from the deal, especially its coastal districts like Tuticorin. Sectors such as handlooms, spices, marine exports, and startups are expected to see strong growth. He also inaugurated infrastructure projects worth nearly ₹4,900 crore during his visit and said the FTA will directly support economic growth and job creation in the region.
Strategic Move in India’s Trade Policy
Commerce Minister Piyush Goyal has described the agreement as a “gold standard” for future FTAs. India maintained key protections for agriculture and dairy sectors while securing broader market access for Indian businesses. The deal is being viewed as a benchmark for India’s upcoming trade talks with the European Union and the United States, indicating a more proactive trade strategy.
The FTA is expected to not only strengthen India–UK relations but also position India as a key player in shaping future global trade frameworks.
