India, UK sign Free Trade Agreement in London during PM Modi’s visit

After more than three years of negotiations, India and the UK have entered into a Free Trade Agreement (FTA) aimed at increasing annual bilateral trade by US$34.5 billion. It is India’s first major trade partnership in more than 10 years.

On July 24, 2025, trade ministers Piyush Goyal of India and Jonathan Reynolds of the UK signed the agreement at British Prime Minister Keir Starmer’s Chequers estate in Aylesbury, England. This event took place during Indian prime minister Narendra Modi’s two-day visit to the UK, with both Starmer and Modi present at the signing.

Among others, the India-UK FTA aims to strengthen the protection of India’s geographical indications (GI) products as well as allow the UK to have preferential access to Indian high-end cultural products.

The FTA does not have provisions for patent term extensions, thus setting up guardrails for India’s US$25 billion generic pharmaceutical industry.

“This matter gained significant attention during the FTA negotiations, especially because the Indian Patent Office is known for its prolonged patent-granting process. The argument was that the time taken to grant a patent should be added to the patent term, which was particularly relevant for pharmaceutical patents. However, the final agreement does not include any provisions for extending the patent term,” revealed Ranjan Narula, managing partner at RNA in Gurugram.

Known as the “pharmacy of the world,” India is one of the leading global suppliers of generic drugs, supplying around 20 percent of these affordable medicines. Almost half of India’s generic products are exported, with the numbers steadily increasing. In fiscal year 2023, exports amounted to US$25.36 billion. The United States is one of its major export markets, which also includes sub-Saharan Africa.

The India-UK FTA also excludes data exclusivity provisions.

“Innovator companies have consistently advocated for the protection of clinical trial data generated for drug approval. They oppose the use of this data by generic manufacturers for their own drug approvals within a defined period. India, on the other hand, has opposed data exclusivity as it could delay access to more affordable generic medicines, impacting drug affordability. Innovator companies argue that the TRIPS Agreement (Agreement on Trade-Related Aspects of Intellectual Property Rights) mandates the protection of this data, but there is a differing interpretation of this issue. The final India-UK FTA does not include data exclusivity, although press reports suggest that the UK pushed for its inclusion during negotiations,” Narula explained.

According to India’s Ministry of Commerce and Industry in May 2025, most Indian exports to the UK will not be slapped with import duty under the agreement. The FTA will also significantly lower the average tariff on British products entering the Indian market as well as import taxes on whisky and gin, among others.

The India-UK FTA awaits ratification by the British Parliament.