Prime Minister Narendra Modi reached London to make his fourth trip to the United Kingdom since becoming prime minister in 2014. In this visit, he will have high-level exchanges with freshly elected British Prime Minister Keir Starmer, with a keen emphasis on wrapping up a pending India-UK free trade agreement (FTA). The agenda also comprises trade cooperation, healthcare, renewable energy, education, and security.
India-UK Free Trade Agreement to Be Signed Today
Accompanied by Commerce and Industry Minister Piyush Goyal, PM Modi will witness the signing of the FTA, which follows the conclusion of negotiations on May 6 after three years of intense talks. The agreement marks a milestone in post-Brexit Britain’s trade strategy and is the largest deal the UK has signed since leaving the European Union.
The agreement aims to double bilateral trade between India and the UK to $120 billion by 2030 by removing and cutting tariffs on priority goods and services.
What the Trade Deal Includes
The FTA eliminates export duty on Indian labor-intensive items such as leather, footwear, and textiles, reduces the cost of imports on British whisky and vehicles, and facilitates greater trade on both sides.
99% of Indian goods will get duty-free access to the UK market,” a senior trade official assured. This access will span virtually the entire existing trade volume between the two nations.
In addition, a double contribution agreement has been signed. This exempts Indian employers from making social security contributions for employees in the UK, which is seen to increase business confidence and lower recruitment costs.
Investment and Trade Snapshot
Britain currently stands as the sixth-largest investor in India, with investments worth $36 billion. There are 1,000 Indian companies operating in the UK, employing over 100,000 people, and contributing $2 billion in investments to the British economy.
India’s exports to the UK grew 12.6% to $14.5 billion, while imports rose 2.3% to $8.6 billion in 2024–25. Bilateral trade rose from $20.36 billion in 2022–23 to $21.34 billion in 2023–24.
Following the UK visit, PM Modi will travel to the Maldives at the invitation of President Mohamed Muizzu. The visit is being seen as a diplomatic reset in India-Maldives relations, which had cooled under Muizzu’s early tenure.
