India and UK to sign trade deal – media
New Delhi and London will sign a free trade agreement (FTA) when Prime Minister Narendra Modi visits Britain this week, Indian media outlets have reported.
India’s cabinet approved the FTA on Tuesday, the News18 website said, citing government sources. “We are working on the legal scrubbing and other last-minute work for the FTA,” Indian Foreign Secretary Vikram Misri said on Tuesday.
The UK is the sixth-largest investor in India, with cumulative investment of $36 billion. India is also a major investor in the UK, with nearly $20 billion in cumulative investment, according to official data.
The deal has been in the works since 2001, but was stalled as London sought “more favorable” conditions such as tariff reductions on goods being shipped to India, unnamed UK government officials told the Hindu BusinessLine newspaper last year.
PM @narendramodi has embarked on an official visit to the United Kingdom. This will be PM’s fourth visit to 🇬🇧. In the second leg of his visit, PM will undertake a State Visit to Maldives & participate as ‘Guest of Honour’ at the 60th anniversary celebrations of the… pic.twitter.com/3ik9zr78fj
— Randhir Jaiswal (@MEAIndia) July 23, 2025
India is seeking a ‘double contribution convention pact’ with the UK, as per reports. Such a pact will save Indian IT professionals in the UK around 20% of their salary by exempting them from paying social security contributions for three years. This will benefit over 60,000 employees, according to the reports.
Under the deal, India will reduce duty on UK whisky and gin from 150% to 75% and further to 40% in the tenth year of the agreement. Additionally, tariffs on automotive products will go down from over 100% at present to 10%, subject to a quota, a News18 report said.
Reductions on import duties on cosmetics, aerospace, lamb, medical devices, salmon, electrical machinery, soft drinks, chocolate, and biscuits are also in the works. Once the FTA is signed, it will require approval from the British Parliament. New Delhi is also in talks for a trade deal with the US and EU.
