India and the United Kingdom on Friday concluded a wide-ranging business agreement aimed at strengthening bilateral trade, investment, and strategic cooperation. The deal, signed after months of high-level negotiations, is expected to significantly increase the flow of goods, services, and capital between the two countries.
Senior officials from both governments described the agreement as a “historic milestone” in the long-standing economic partnership between India and Britain. The pact includes provisions covering trade in goods and services, technology transfer, joint research initiatives, and climate cooperation.
According to a joint statement issued by the Ministry of Commerce and the UK Department for Business and Trade, the deal is projected to raise bilateral trade from the current £38 billion (approx. ₹4 lakh crore) to over £50 billion by 2030.
“This agreement represents a new era of economic collaboration between two democratic and fast-growing economies. It reflects mutual trust and shared goals in global commerce,” said Union Commerce and Industry Minister Piyush Goyal, who led the Indian delegation during the final round of talks.
The agreement covers a range of sectors including pharmaceuticals, clean energy, financial services, defense manufacturing, and digital technology. Tariffs on more than 90 percent of traded goods are set to be reduced or eliminated, while regulatory frameworks will be aligned to encourage ease of doing business on both sides.
As part of the deal, the UK has committed to investing over £1.5 billion in India’s renewable energy and infrastructure sectors over the next five years. Meanwhile, Indian companies operating in the UK are expected to benefit from relaxed visa rules and streamlined business processes.
British Prime Minister Keir Starmer, in a message released from London, welcomed the agreement and stated that it “demonstrates the strength of the UK’s international partnerships in a post-Brexit world.” He further added that the deal would create new opportunities for British exporters and skilled professionals.
The Indian Ministry of External Affairs confirmed that the agreement also includes provisions for enhanced mobility of skilled workers, collaborative university partnerships, and cybersecurity cooperation.
The business communities in both countries have responded positively to the announcement. The Confederation of Indian Industry (CII) termed the deal a “major breakthrough,” while the UK-India Business Council said it would “accelerate innovation and job creation.”
Negotiations for the agreement began in 2022 and had seen multiple rounds of dialogue, occasionally stalled by changes in the UK’s political leadership and external economic factors. With the final signatures now in place, both sides are preparing for phased implementation beginning later this year.
Officials from both countries have expressed hope that the deal will serve as a model for future trade pacts between major democracies, especially in balancing commercial interests with climate goals and digital ethics.