India-UK Sign Historic FTA: Why This Deal Matters and How It Benefits Both Nations

National News: India and the United Kingdom signed a historic Free Trade Agreement (FTA) on Thursday, 24 July 2025. This important agreement was concluded during Prime Minister Narendra Modi's visit to the United Kingdom, where he met British Prime Minister Keir Starmer at Chequers. Chequers, the official rural residence of the UK Prime Minister located about 50 km northwest of London, witnessed this historic moment.

Economic development and opportunities for youth

This India-UK free trade agreement will open new doors of economic growth and boost job creation, especially for the youth of India. According to government officials, this agreement will play a vital role in further strengthening India's economy by 2030. Prime Minister Narendra Modi termed it a "historic milestone" and said, "India and the UK have successfully concluded an ambitious and mutually beneficial free trade agreement."

Key service sectors benefit

The agreement will promote information technology (IT), IT-enabled services (ITES), financial services, and professional services such as management consultancy, architecture, and engineering as well as education-related services. The agreement will provide better opportunities to Indian professionals in the UK and will further simplify trade between the two countries. 

Future prospects

This agreement is an important step towards India becoming the world's third largest economy. Both countries are now engaged in the process of reviewing the legal text of this agreement and getting parliamentary approval.