TestCloud
Prep • Practice • Perform
Log In

India and UK Finalize Free Trade Agreement and Sign Pact on Double Taxation Avoidance.

MOUs and Agreement | Dated: 10 May 2025

In May 2025, Indian Prime Minister Narendra Modi and UK Prime Minister Sir Keir Starmer jointly announced the conclusion of a landmark India-UK Free Trade Agreement (FTA), along with the signing of a Double Contribution Convention aimed at promoting bilateral trade, investment, and economic collaboration.

🎯 Key Highlights:

  • - This FTA is designed to support India’s vision of Viksit Bharat (Developed India) 2047 and is poised to deepen India’s engagement in global supply and value chains.

💡 Other Important Facts:

  • (i) The India-UK FTA offers zero-duty market access to 99% of Indian exports to the UK, effectively covering nearly the entire trade volume and providing a major boost to India’s export sector.
  • (ii) Currently, the bilateral trade between India and the UK stands at USD 60 billion, and the agreement is projected to double this figure by the year 2030, enhancing economic cooperation and mutual growth.
  • (iii) The Double Contribution Convention, signed alongside the FTA, seeks to eliminate the risk of double taxation for workers who are temporarily assigned across both nations, promoting smoother labor mobility and cross-border employment.

📚 Test Your Knowledge:

With which country did India recently conclude a Free Trade Agreement (FTA) and a Double Contribution Convention in May 2025?

Correct Answer: United Kingdom (UK)

🚀 Quick Recap:

About the United Kingdom (UK)

  • Prime Minister: Sir Keir Starmer
  • Capital: London