India and the United Kingdom have concluded a free trade agreement (FTA) aimed at increasing trade, investment, and innovation. The agreement, which was announced following a call between Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, focuses explicitly on strategic sectors.
The deal includes a Double Contribution Convention and is expected to “catalyse trade, investment, growth, job creation, and innovation in both our economies”, PM Modi announced on X.
Industry leaders have welcomed the development. Ashok Chandak, president of India Electronics and Semiconductor Association (IESA) and SEMI India, believes that the FTA is a timely catalyst for boosting India’s image and business opportunities globally in multiple sectors.
He stressed the FTA’s potential to benefit the services sector through expanded research and development, particularly in semiconductor design and embedded systems. “By reducing tariffs on components, raw materials, and capital equipment, it lowers production costs and enhances the export potential of ‘Make in India’ products,” he said.
Moreover, the FTA plays a role in enabling skilled talent exchange, strengthening supply chain resilience, and supporting green electronics cooperation. He also stressed setting a benchmark for future trade agreements, signalling India’s commitment to aligning with like-minded democracies, and boosting its negotiating position in high-tech and strategic sectors globally.
The FTA comes amid growing global interest in India’s electronics and semiconductor ecosystem and is viewed as a strategic step in positioning the country as a reliable partner in global supply chains.
This also aligns with India’s goal to increase exports by $1 trillion by 2030. It enhances access for UK goods like cars to India while reducing tariffs on Indian textiles, amidst global trade tensions from US tariffs under US President Donald Trump.
