Prime Minister Narendra Modi and UK Prime Minister Keir Starmer formally signed the India-UK Free Trade Agreement (FTA) on Thursday, marking a significant step toward opening new avenues for growth, skill development, and employment opportunities for Indian youth across multiple sectors.
PM Modi, while addressing a press briefing after the signing of the landmark pact, said: “This agreement not only paves the way for a stronger economic partnership but also serves as a blueprint for our shared prosperity. On the one hand, Indian textiles, footwear, gems and jewellery, seafood, and engineering goods will gain better market access in the UK. Indian horticultural products and the processed food industry will also find new opportunities in the UK market.”
“This agreement is especially beneficial for India’s youth, farmers, fishermen, and the MSME sector. On the other hand, people in India will be able to access products made in the UK — such as medical devices and aerospace parts — at more affordable prices,” PM Modi said.
From IT to Education: FTA to boost key Indian service sectors
The FTA will bring substantial advantages to India’s services sector by creating opportunities in Information Technology and IT-enabled Services (IT/ITeS), Financial Services, Professional Services (such as management consultancy, architecture, and engineering), Other Business Services, and Education Services.
These sectors offer promising career paths for young professionals looking to enter high-growth industries.
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India-UK FTA to double bilateral trade to $120 billion by 2030
The India-UK Free Trade Agreement (FTA), which was finalised in May this year, has now been officially signed. The FTA is poised to significantly strengthen economic ties between the two nations.
According to the British High Commission, the agreement is expected to boost annual bilateral trade by €25.5 billion, add £4.8 billion to the UK’s GDP, and increase wages by £2.2 billion in the long run. The shared goal is to double trade volume from $60 billion to $120 billion by 2030.
Additionally, the FTA grants duty-free access to the UK market for India’s labour-intensive sectors, including leather and footwear, textiles and apparel, gems and jewellery, furniture, and sports goods.
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With the UK currently importing over $23 billion worth of these products annually, the agreement is expected to boost production and generate employment in India—particularly benefiting young workers.
A key benefit of the agreement is the exemption from social security contributions in the UK for Indian professionals working there temporarily (for up to three years). These contributions currently amount to nearly 20 percent of an employee’s salary.
This change will result in substantial financial savings for Indian service providers, enhance global competitiveness, and make international assignments more attractive to Indian youth by offering valuable global exposure.
