India and UK Seal Free Trade Agreement; PM Modi Calls It a ‘Major Step Forward’

India and the UK on Tuesday sealed an ambitious free trade deal along with a double contribution convention with Prime Minister Narendra Modi saying that the landmark pacts will catalyse trade, investment, growth and job creation in both the economies.

Modi made the announcement on the agreements after a phone conversation with his British counterpart Keir Starmer.

"In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention," Modi said in a social media post.

"These landmark agreements will further deepen our Comprehensive Strategic Partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies," he said.

Modi said he was looking forward to welcoming Starmer in India soon.

The leaders described it as a historic milestone in the bilateral Comprehensive Strategic Partnership that would foster trade, investment, innovation and job creation in both the economies. Both agreed that the landmark agreements between the two big and open market economies of the world will open new opportunities for businesses, strengthen economic linkages, and deepen people-to-people ties.

The prime minister's office said the two leaders agreed that expanding economic and commercial ties between India and the UK remain a "cornerstone" of the increasingly robust and multifaceted partnership.

"The conclusion of a balanced, equitable and ambitious FTA, covering trade in goods and services, is expected to significantly enhance bilateral trade, generate new avenues for employment, raise living standards, and improve the overall well-being of citizens in both countries," it said.

"It will also unlock new potential for the two nations to jointly develop products and services for global markets," it added.

"This agreement cements the strong foundations of the India-UK Comprehensive Strategic Partnership, and paves the way for a new era of collaboration and prosperity," the PMO said in a statement.