A ‘game-changing, win-win’ pact: Piyush Goyal hails the India-UK free trade agreement

As Prime Minister Narendra Modi stood alongside Britain’s new Prime Minister, Keir Starmer, to witness the signing of the long-awaited Free Trade Agreement (FTA) in London, the symbolism mattered as much as the economics. 

 

For India, it was the closure of a chapter that had dragged on for two decades; Britain, still adjusting to life outside the European Union, was a rare chance to reclaim some of the global market access Brexit had cost.

 

Union Commerce Minister Piyush Goyal on Saturday termed the FTA as a “game-changing” pact that was made possible due to the trust and leadership of Prime Minister Narendra Modi.

 

The FTA, which comprises 30 chapters, is expected to be placed before Parliament for approval. “It is a win-win agreement—comprehensive, inclusive and balanced—that will benefit our farmers, fishermen, workers, youth, MSMEs and labour-intensive industries,” Goyal said.

 

The FTA was signed during PM Modi’s visit to the UK, where Prime Minister Keir Starmer was also present. The agreement was signed by Goyal and the Secretary of State for Business and Trade, Jonathan Reynolds. S. Jaishankar, Minister of External Affairs and Rachel Reeves, Chancellor of the Exchequer, were also present.

 

Goyal said the FTA is “win-win” as Indian dairy and agriculture have been protected. On the sensitive dairy sector, Goyal clarified, “No opening has been allowed in dairy. Prime Minister Modi was clear that our farmers and dairy sector must be protected. Duties on dairy will remain in place, Goyal insisted, a remark that underscores the domestic balancing act behind the deal.

 

But 95 pr cent of India’s agricultural and processed food products will now get duty-free access to the UK market. “Our spices and 99 per cent of our fisheries products have secured zero-duty entry. Textiles, footwear, gems and jewellery, and pharmaceuticals will also enjoy zero duty. This will enable our MSMEs to go global,” he said.

 

The minister also noted that the iconic Kolhapuri chappal has received geographical indication (GI) recognition and will now gain global exposure. “Kolhapuri chappals represent a ₹8,000-10,000 crore industry. It is a beautiful product, and I spent my childhood wearing them,” he said.

 

“Because of PM Modi’s trust and global standing, we have been able to close a deal that had been hanging fire for two decades,” Goyal said, addressing a press conference at the BJP headquarters. He described the agreement as the “largest, most important and comprehensive” trade pact India has signed with the UK, a developed economy and the world’s sixth-largest.

 

The agreement also addresses social security contributions under the Double Contribution Convention. “Over one lakh Indians are currently engaged in short-term services in the UK, but 25 per cent of their salaries used to get deducted for social security. Unless they stayed for over 10 years, they couldn’t get it back,” Goyal said.

 

“Now, under the new arrangement, professionals—whether in IT, hospitality, as chefs, or yoga instructors—can work for up to three years and contribute to EPFO in India. They will earn tax-free interest and accumulate funds for their pension,” he added.

 

Goyal called the FTA a “common prosperity scheme” that reflects Modi’s vision of mutual growth and collaboration. “Our products will get preferential treatment and duty-free access, while we have successfully safeguarded sensitive sectors like agriculture and dairy. It sends a big message for India’s economic trajectory in the coming years,” he said.

 

For Britain, starved of major trade deals since leaving the EU, India is both a market and a strategic partner. The deal also signals the growing convergence of political interests between New Delhi and London.

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