India-UK Free Trade Agreement Likely in 2025, Vision 2035 Roadmap Unveiled
India-UK: British Prime Minister Starmer stated in Parliament that India is an emerging power on the global stage and on track to become the third-largest economy by 2028.
The long-awaited Free Trade Agreement between India and the UK has been in the pipeline for the last four years and may materialize in 2025. As reported in _The UK Parliament,_ Starmer said in Parliament, "India is a rising power in the international arena and set to become the third-largest economy in 2028."
The British PM also stated that a "Vision 2035" agreement was also agreed to reinvigorate bilateral relations beyond trade and investment. Negotiations regarding the FTA dominated headlines for much of the year. Both sides appeared committed to the agreement, and the formal signing took place during PM Narendra Modi's visit to the UK in July. Following bilateral discussions with Modi, British PM Keir Starmer said, "We have reached a historic agreement with India, the world's fastest-growing economy." He also accepted an invitation to visit India in October with the largest-ever British business delegation.
The ambitious “10-year India-UK Vision 2035” roadmap for both countries, aiming to achieve shared goals in the future, is also being launched in the year 2025. The increasing UK education sector in India would also yield fruitful results in the next year. Nine UK universities are also set to finalize foreign campuses in India.
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According to an analysis by the UK Department for Trade and Commerce (DBT), bilateral trade could increase from the current £44.1 billion to several billion pounds once the Comprehensive Economic and Trade Agreement (CETA) comes into force. The agreement is expected to be ratified by the British Parliament in the first half of 2026, which will be mutually beneficial to both countries.
According to recent data, approximately 45,000 Indian professionals on study visas and 22,000 on work visas left the country, leading to a decline in net immigration. This trend may continue with stricter rules, such as increasing the waiting period for permanent residence to 10 years.
A shared commitment to counter-terrorism has also been a key aspect of India-UK relations. Britain expressed condolences for the terrorist attack in Delhi in November and called for a diplomatic solution after the Pahalgam attack in Kashmir in April.
