India and UK have signed a historic free trade agreement, successfully concluding three years of talks, Prime Minister Narendra Modi announced on Tuesday.
"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 post on 'X' after a conversation with UK counterpart Keir Starmer.
PM Modi added that the "landmark" agreement would deepen the strategic ties between both countries while also boosting job opportunities, innovations and investment.
"These landmark agreements will further deepen our Comprehensive Strategic Partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies," he wrote.
"I look forward to welcoming PM Starmer to India soon," the prime minister added.
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.
The trade talks with the UK had resumed in February this year after a hiatus of nine months. The 14th round of negotiations for the FTA, which began on January 10 last year, was underway till May 2024 when the process was paused by the UK side due to their elections.
According to a press statement by the ministry of commerce in February, both sides agreed to resume negotiations towards a balanced, mutually beneficial and a forward-looking deal that delivers mutual growth and builds on the strengths of the two complementary economies.
(With inputs from PTI)