India-UK Free Trade Deal: Big Gains, Bigger Challenges

On 6th May 2025, India and the United Kingdom signed a Free Trade Agreement (FTA), aiming to enhance bilateral trade and economic ties between the world’s fifth and sixth largest economies.

What is a Free Trade Agreement (FTA)?

A Free Trade Agreement (FTA) is a pact between two or more countries to reduce or eliminate customs duties and non-tariff barriers on substantial trade in goods and services.

These agreements aim to:

  • Set clear rules for international trade
  • Simplify import/export regulations
  • Promote easier and cost-effective cross-border trade and investment
  • Expand access to a wider range of affordable products for consumers
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