India and UK to Sign Free Trade Agreement on July 24, 2025

As per news reports, Prime Minister Narendra Modi will reportedly be in the UK from July 23 - July 24, 2025. He is visiting at the invitation of UK Prime Minister Keir Starmer. Commerce and Industry Minister Piyush Goyal will also be part of the delegation. The purpose is to sign the India-UK Free Trade Agreement (FTA).

The 2 countries concluded FTA negotiations on May 6, 2025. Legal teams have since worked on preparing the final text. The signing will take place in London. Trade ministers from both sides are expected to officially sign the agreement.

Ratification Process 

As per news reports, after signing, the agreement will not be implemented immediately. It must be ratified by India’s Cabinet and the British Parliament. This process may take up to a year in both countries. Only after ratification will the agreement come into effect.

Tariff Changes on Goods

India will reduce or remove tariffs on 90% of tariff lines, covering 92% of UK exports. The UK will eliminate tariffs on 99% of Indian goods. Indian products like leather, textiles, and footwear are among those expected to benefit. UK exports such as whisky and cars will become cheaper in India.

Provisions on Services and Investment

The FTA includes national treatment for UK firms in select service sectors such as telecom, construction, and environment. India has committed to maintaining 74% foreign direct investment (FDI) in insurance and banking for UK companies. UK firms will also gain access to Indian government procurement.

The agreement provides for easier movement of professionals, including business visitors, service providers, and intra-corporate transferees. Independent professionals like chefs and yoga instructors are also covered. Certain dependents will have the right to work.

Read More: India-EFTA Trade Deal Kicks Off October 1, 2025: Piyush Goyal!

Conclusion

The agreement is to be signed on July 24, 2025. Implementation will depend on the ratification process in both countries.

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