Prime Minister Narendra Modi has announced that India and the UK have signed the long-awaited Free Trade Agreement and the Double Contribution Convention.
In a post on social media platform X, PM Modi called it a “historic milestone” and said it would “further deepen our comprehensive strategic partnership and catalyse trade, investment, growth, job creation, and innovation in both our economies.”
“Prime Minister Narendra Modi and Prime Minister of the United Kingdom Keir Starmer had a telephone conversation today. The two leaders welcomed the successful conclusion of an ambitious and mutually beneficial India–UK Free Trade Agreement, along with the Double Contribution Convention,” the statement said.
The UK has urged India to lower tariffs on products like cars and whisky, while India has pushed for better access for its service sector workers. The agreement might lead to India making more substantial tariff cuts, given its status as a high-tariff nation. UK goods face an average tariff of 14.6% in India, compared to 4.2% for Indian goods entering the UK.
Modi and Starmer are expected to meet in the coming months to sign the deal.
As part of the agreement, the UK and India will strike a double contribution convention under which Indian workers temporarily living in the UK will not have to pay national insurance contributions for three years. The same applies to British workers in India, and meets a key demand by Delhi.
Officials said the deal involved no change to immigration policy but would facilitate visa routes for Indian professionals in certain sectors.
