India and the United Kingdom have signed a historic Free Trade Agreement (FTA) in London, aiming to significantly enhance bilateral trade. The agreement, signed on July 24, 2025, covers goods and services, digital trade, investment, and intellectual property, with a target to boost trade to over £25 billion annually by 2040. It also aims to double total trade to $120 billion by 2030. Key sectors such as textiles, jewellery, pharmaceuticals, and automotive are expected to benefit from reduced tariffs. The FTA also facilitates professional mobility and participation in public projects. However, challenges remain, including pending investment protection treaties and potential European carbon taxes. The agreement is pending approval from the UK Parliament and will be implemented gradually over the next decade.