India-UK Free Trade Agreement Timeline: How A Three-Year Tussle Led To A Historic Agreement
India-UK FTA Deal Timeline: After more than three years of negotiations, India and the United Kingdom have formally signed a landmark Free Trade Agreement (FTA) on July 24. The deal, inked by Prime Minister Narendra Modi and his UK counterpart Keir Starmer, marks India’s second comprehensive pact with a European partner (after the EFTA) and the UK’s fourth completely new trade agreement since Brexit.
The journey to this milestone was anything but challenging, marked by shifting political tides, tough negotiating stances, and elections in both countries. However, as officials from both sides confirmed, the final version of the agreement includes provisions on goods, services, investments, and intellectual property rights, with most sticking points resolved.
Timeline: Key Moments in the India-UK FTA Journey
- May 2021: Modi and Johnson announce Enhanced Trade Partnership
- January 2022: FTA negotiations officially begin
- Rounds 1–6: Held between Jan–Dec 2022 in virtual, London, and New Delhi formats
- Rounds 7–12: Feb–Aug 2023, with key discussions on services, mobility, and whisky duties
- Round 13: Sep–Dec 2023, talks fast-tracked ahead of elections
- Round 14: Jan–Mar 2024, deadlock over social security and carbon tax
- April 2024: Talks paused due to Indian elections; UK elections also announced
- June 2024: Modi re-elected; commits to concluding FTA in 100 days
- July 2024: Keir Starmer becomes UK PM, backs early conclusion of FTA
- January 2025: Talks formally relaunched
- April 2025: 90% of the agreement completed
- May 2025: Final hurdles cleared
- July 24, 2025: India-UK FTA formally signed
A Long Road to Free Trade
The groundwork for the India-UK FTA was laid in May 2021 when then British Prime Minister Boris Johnson and PM Modi announced an “Enhanced Trade Partnership,” paving the way for full-fledged talks. Formal negotiations kicked off in January 2022 with a virtual first round and continued through 15 rounds across New Delhi and London until May 2025.
In the early stages, Johnson had hoped to conclude the deal by Diwali 2022, but delays set in as trade officials from both sides focused on ironing out quality issues over quick timelines. Negotiations often stalled on contentious topics like mobility visas for Indian professionals, carbon tax exemptions, and duty cuts on whisky and electric vehicles.
The talks hit further roadblocks in late 2023 and early 2024, with both countries heading into election seasons. As rounds 13 and 14 dragged on without breakthroughs, the Indian government shifted focus to its general election, while the UK entered its campaign period. In the meantime, India signed a trade pact with EFTA in March 2024.
Key Concessions and Sticking Points
By spring 2024, the bulk of the FTA's 26 chapters were completed. However, some of the thorniest issues remained unresolved, including India’s demand for social security agreements and the UK’s push for better access to India’s government procurement and financial services sectors.
On April 9, Finance Minister Nirmala Sitharaman and UK Chancellor Rachel Reeves jointly announced that 90 per cent of the agreement had been finalised, including the long-disputed mobility provisions. By late April, Indian negotiators eased their position on visas, and Commerce Minister Piyush Goyal declared that “25 of 26 matters have been agreed.”
The final nod came on May 6, when Modi announced that a consensus had been reached, setting the stage for the formal signing two months later.
A Milestone for Bilateral Trade
The FTA is being hailed as a landmark achievement by both governments and industry stakeholders. Among the sectors expected to benefit most is the alcohol industry, particularly Scotch whisky exports to India.
“If the 150% duty levied on imported Scotch whisky is reduced, it would be one of the greatest milestones for market access in the alcoholic beverage industry in decades,” said Diageo India CEO Hina Nagarajan.
With the agreement now signed, implementation efforts will begin in earnest. Both sides are expected to table the FTA for parliamentary scrutiny, while trade and business groups prepare to realign supply chains and investment strategies.
As India and the UK look to deepen strategic ties, this agreement stands as a testament to patient diplomacy, political will, and economic pragmatism.
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