**Summary:**
On July 22, 2025, the Ministry of Commerce and Industry addressed Lok Sabha Unstarred Question No. 434 regarding the India-UK Free Trade Agreement (FTA). The Minister of State, Shri Jitin Prasada, confirmed that negotiations for the India-UK FTA concluded successfully on May 6, 2025, as announced by the Prime Ministers of both nations. The agreement is described as modern, comprehensive, and designed to foster deep economic integration, trade liberalization, and tariff concessions. It aims to provide comprehensive market access for Indian goods across all sectors, promote good regulatory practices, and enhance transparency, aligning with India's domestic reforms for ease of doing business.
The FTA documents will be released to the public upon formal signing. The government has ensured the protection of India's interests and sensitivities throughout the negotiation process, including considerations regarding the Carbon Border Adjustment Mechanism. The FTA will enter into force after it is signed and ratified by both countries. The Ministry noted that each FTA is unique and tailored to maximize benefits for the specific nations involved. Finally, the response clarified that while India and the US are currently negotiating a Bilateral Trade Agreement, it has not yet been signed.
Key Entities Referenced
India UK Free Trade Agreement: A proposed trade agreement between India and the United Kingdom, aimed at reducing trade barriers and promoting economic cooperation.
SHRI BALASHOWRY VALLABHANENI: Member of LOK SABHA who raised a question regarding the India UK Free Trade Agreement.
Ministry of Commerce and Industry: The Indian government ministry responsible for international trade and industrial development.
SHRI JITIN PRASADA: The Minister of State in the Ministry of Commerce and Industry who provided the answer to the LOK SABHA question.
Carbon Border Adjustment Mechanism: A trade policy tool being considered in the context of the FTA, designed to address carbon leakage and promote decarbonization.
UKAustralia Free Trade Agreement: A trade agreement between the United Kingdom and Australia. Mentioned for comparison purposes.
UKNew Zealand Free Trade Agreements: A trade agreement between the United Kingdom and New Zealand. Mentioned for comparison purposes.
India US Free Trade Agreement: A proposed trade agreement between India and the United States, currently under negotiation.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
(DEPARTMENT OF COMMERCE)
LOK SABHA
UNSTARRED QUESTION NO. 434
ANSWERED ON 22.07.2025
INDIA UK FREE TRADE AGREEMENT
434. SHRI BALASHOWRY VALLABHANENI:
Will the Minister of COMMERCE & INDUSTRY (वाणिज्य और उद्योग मंत्री) be
pleased to state:
a. whether India and UK entered into Free Trade Agreement;
b. if so, the details thereof along with the salient features of the FTA;
c. the reasons that the Government has not yet put the FTA in the public
domain;
d. the final outcome in the FTA with regard to Carbon Border Adjustment
Mechanism;
e. the time by which the FTA will come into force;
f. the manner in which India-UK FTA is different from UK-Australia and UK-New
Zealand FTAs; and
g. whether India-US Free Trade Agreement has been signed and, if so, the
details thereof along with the salient features of the FTA?
ANSWER
वाणिज्य और उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY
(SHRI JITIN PRASADA)
a & b: The Prime Ministers of India and UK have announced the successful
conclusion of India-UK FTA negotiations on 6th May 2025. The FTA with the UK is a
modern, comprehensive and landmark agreement which seeks to achieve deep
economic integration along with trade liberalisation and tariff concessions. The FTA
ensures comprehensive market access for goods, across all sectors, covering all of
India’s export interests. The FTA seeks to promote good regulatory practices and
enhance transparency that are in sync with India’s own focus on domestic reforms to
enhance the ease of doing business.
c: As per standard practice, the FTA documents are put in public domain after
formal signing of the agreement.
d: The government of India takes care of all the sensitivities associated with the
FTA and ensures that India’s interests are protected.
e: The FTA comes into force after signing and ratification by both the countries.
f: Every FTA is unique and is based on specific dynamics of trade and is aimed
at maximizing benefits for both nations.
g: India and US are negotiating a Bilateral Trade Agreement which has not been
signed as yet.
******