NEW DELHI: The India-United Kingdom Free Trade Agreement (FTA) has officially come into force, marking a significant milestone in the economic partnership between the two countries and paving the way for expanded trade, investment, and job creation.

The agreement, described by both governments as the most comprehensive trade deal negotiated by India in recent years, is expected to substantially reduce tariffs on a wide range of goods, improve market access for businesses, and strengthen cooperation across sectors including services, technology, financial services, pharmaceuticals, and manufacturing.

Under the FTA, India will gain preferential access for key export sectors such as textiles, apparel, leather goods, gems and jewellery, engineering products, marine products, and agricultural goods. The United Kingdom, in turn, will benefit from lower tariffs on products including whisky, automobiles, cosmetics, medical devices, and advanced manufacturing equipment, with phased reductions for select categories.

The agreement also includes provisions to facilitate digital trade, simplify customs procedures, protect intellectual property, and promote sustainable development and innovation. Businesses in both countries are expected to benefit from greater regulatory certainty and reduced trade barriers.

Officials estimate that the FTA could significantly boost bilateral trade over the coming years while encouraging greater investment flows between the world's fifth and sixth largest economies. It is also expected to create new employment opportunities by expanding exports and strengthening supply chain integration.

Prime Minister Narendra Modi and UK Prime Minister Keir Starmer welcomed the agreement's entry into force, describing it as a landmark achievement that reflects the growing strategic and economic partnership between India and the United Kingdom.

Industry bodies in both countries have hailed the implementation of the pact, saying it will enhance competitiveness, lower costs for businesses and consumers, and provide fresh opportunities for small and medium-sized enterprises to access international markets.

The agreement comes at a time when both nations are seeking to diversify trade partnerships amid evolving global economic conditions. Analysts believe the FTA will strengthen long-term economic cooperation while reinforcing the broader India-UK Comprehensive Strategic Partnership.

With the agreement now operational, exporters and investors from both countries are expected to begin availing themselves of the new tariff concessions and market access provisions, ushering in a new phase of bilateral economic engagement.