Prime Minister Narendra Modi landed in the United Kingdom on Wednesday for a two-day official visit, during which India and the UK are set to formally sign a much-anticipated free trade agreement (FTA) that has been in negotiation for over three years. This marks Modi’s fourth visit to the UK since taking office in 2014 and comes amid renewed efforts to deepen strategic, economic, and cultural ties between the two nations.
On arrival, the Prime Minister received a warm welcome from members of the Indian diaspora and UK officials. He was accompanied by Commerce and Industry Minister Piyush Goyal, who will co-sign the trade deal on behalf of India. The UK side will be represented by Prime Minister Keir Starmer and senior ministers from his cabinet.
The FTA, once ratified by the British Parliament, will mark the UK’s most significant bilateral trade deal since its exit from the European Union. India’s Union Cabinet has already given its approval. The pact is expected to eliminate tariffs on 99 percent of Indian exports to the UK, including major sectors such as leather, garments, footwear, and food products. In return, tariffs on around 90 percent of British goods, notably whisky and automobiles, will be reduced when entering the Indian market.
Officials from both sides expect the agreement to significantly increase bilateral trade, with a goal of doubling it to $120 billion by 2030. In the financial year 2023-24, bilateral trade stood at $21.34 billion, up from $20.36 billion the previous year. India’s exports to the UK grew by 12.6 percent to $14.5 billion in 2024-25, while imports from the UK rose by 2.3 percent to $8.6 billion.
The deal also includes a major social security agreement, which will allow Indian professionals working in the UK to be exempted from paying into British social security systems. This is expected to reduce financial burdens for Indian companies and professionals posted in Britain.
Beyond trade, Modi and Starmer are scheduled to hold wide-ranging discussions covering health, energy, education, security cooperation, and regional affairs. Officials said the two leaders will also discuss international matters of shared interest, such as Indo-Pacific stability, counter-terrorism collaboration, and climate initiatives.
The UK is currently the sixth-largest investor in India, having committed around $36 billion to various sectors. Over 1,000 Indian companies operate in Britain, employing nearly 1,00,000 people and contributing close to $2 billion in investments.
Following his engagements in London, PM Modi is expected to travel to the Maldives at the invitation of President Mohamed Muizzu. The visit is being viewed as a diplomatic reset between the two nations after a period of strained relations following the leadership change in Malé.
The India-UK FTA signing marks a milestone moment in bilateral relations, reflecting growing confidence in economic collaboration and strategic alignment in a post-Brexit world.
