Milestones for Britain and India: India's labor-intensive exports are expected to be obtained; the UK sees this as the biggest deal since Brexit

India and the UK have reached a free trade agreement (FTA) to promote economic ties between the world's fifth and sixth largest economies in one of the first such global agreements in the Trump era. The deal will make British Scotch whiskey and cars cheaper in India while reducing responsibilities for Indian goods such as British clothing and leather products.Prime Minister Narendra Modi and Keir Starmer announced the FTA and the Social Security Pact after a telephone conversation on Tuesday. The two parties initially aimed to reach a deal in October 2022.
The UK said it was the largest trade agreement since leaving the EU in 2020.
India said 99% of its exports to the UK would benefit from zero responsibility, and the FTA provides important export opportunities for labor-intensive sectors such as textiles, marine products, leather, footwear, footwear, sporting goods and toys as well as gems and jewelry as well as engineering, auto parts, auto parts, engines and organic chemicals.

Trade forecast $120 b to 30
After a 90-day extension, U.S. President Donald Trump's tariff proposal will begin in early July. It is worth noting that the United States has said that India may be one of the countries that Washington has signed a trade agreement for the first time, and the upcoming talks have made it a leader. Bilateral trade is expected to increase to $120 billion by 2030. As many as 14 rounds of negotiations were held between India and the UK. Trade between India and the UK increased by 25 fiscal year in the 24-year fiscal year of US$2.36 billion.

India is protecting sensitive items such as dairy, apples and cheese, the center said.

New Delhi has received exemptions for Indian workers who temporarily paid three years of social security contributions in the UK and its employers under the Double Contribution Convention. This will make Indian service providers more competitive in the UK, with savings accounting for about 20% of their salary. It is expected to benefit only over 60,000 IT department employees. Income from Indian companies and employees is expected to exceed Rs 40 billion.

“Delighted to speak with my friend, PM @Keir_Starmer. In a historical milestone, India and the UK have successfully concluded an ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention,” Modi posted on X. “These landmark agreements will further deepen our comprehensive strategic partnership, and catalyse trade, investment, growth, job creation, and innovation in Both our economy. I look forward to welcome PM Starmer is coming to India soon.”

The FTA takes place in the context of growing economic relations between India and the UK.

“Through pragmatism and purpose, the leaders pointed out that this historic deal is the largest deal the UK has made since leaving the EU and what India's most ambitious India has done,” the UK said in a statement. “Prime Minister Modi also thanked the Prime Minister for his decisive leadership in reaching the deal.”