India and UK conclude Free Trade Agreement and Double Contribution Convention
Prime Ministers Narendra Modi and Keir Starmer on 6 May 2025 announced the conclusion of the India–UK Free Trade Agreement and a Double Contribution Convention, with tariff elimination on about 99% of tariff lines for Indian exports.
Summary
Prime Minister Narendra Modi and UK Prime Minister Sir Keir Starmer, in a telephone conversation on 6 May 2025, welcomed the conclusion of the India–UK Free Trade Agreement (FTA) along with a Double Contribution Convention (DCC). India will gain from tariff elimination on about 99% of tariff lines covering almost 100% of trade value, opening opportunities for sectors such as textiles, marine products, leather, footwear, sports goods and toys, gems and jewellery, engineering goods, auto parts and organic chemicals. Under the DCC, Indian workers temporarily in the UK and their employers are exempt from paying UK social security contributions for three years. The FTA also eases mobility for professionals, including independent professionals such as yoga instructors, musicians and chefs. Negotiations resumed in February 2025 after the two leaders met at the G20 Summit in Rio de Janeiro in November 2024. Bilateral trade is about USD 60 billion and is projected to double by 2030.
Key facts
- Announced
- 6 May 2025, PM Modi and PM Starmer
- Agreements
- Free Trade Agreement + Double Contribution Convention
- Tariff lines
- Elimination on about 99% of lines, almost 100% of trade value
- Social security
- 3-year exemption for Indian workers temporarily in the UK
- Talks
- Resumed February 2025, after G20 Rio meeting, November 2024
- Bilateral trade
- About USD 60 billion; projected to double by 2030
Practice MCQs 4 questions
Under the India–UK FTA concluded on 6 May 2025, India will gain from tariff elimination on about what share of tariff lines?
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Correct answer: B — 99%
India will gain from tariff elimination on about 99% of tariff lines, covering almost 100% of trade value.
Under the India–UK Double Contribution Convention, Indian workers temporarily in the UK and their employers are exempt from UK social security contributions for:
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Correct answer: D — Three years
The exemption is for a period of three years.
Consider the following statements about the India–UK FTA: 1. FTA negotiations resumed in February 2025 after the two Prime Ministers met at the G20 Summit in Rio de Janeiro in November 2024. 2. India–UK bilateral trade of about USD 60 billion is projected to double by 2030. Which of the statements given above is/are correct?
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Correct answer: C — Both 1 and 2
Both are correct, as per the Ministry of Commerce release of 6 May 2025.
Consider the following statements about the India–UK FTA: 1. India will gain tariff elimination on about 90% of tariff lines. 2. The FTA eases mobility for independent professionals such as yoga instructors, musicians and chefs. Which of the statements given above is/are correct?
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Correct answer: B — 2 only
Only 2 is correct. Tariff elimination is on about 99% of tariff lines.