In a visit set to redefine economic and strategic ties between India and the UK, two historic partners, Prime Minister Narendra Modi arrived in London for a high-profile diplomatic mission.
This is his fourth official visit to the UK since 2014. PM Modi is also scheduled to meet King Charles III, Britain’s monarch.
The signing of a landmark free trade agreement is at the heart of this visit. It’s set to reshape economic ties between the two nations.
According to media reports, India’s Prime Minister and British Prime Minister Keir Starmer will discuss opportunities for trade, health, energy, education, and security.
A renewed push for strategic cooperation on multiple fronts is expected on this momentous occasion.
The British media has reported that India intends to lower tariffs on British goods, including gin, whisky and cars.
The UK, for its part, will import more of India’s textiles, gemstones and other goods, reports added.
“It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth,” British PM Starmer was quoted as saying on the landmark deal.
Furthermore, promoting the Band India from Kohlapuri Chappals to Banarasi and Chanderi textiles is a massive priority in the India-UK Free Trade Agreement.
Accompanying the Indian Prime Minister is Commerce and Industry Minister Piyush Goyal, who will formally sign the free trade agreement (FTA) alongside his UK counterpart. The deal, which has been three years in the making, marks the most significant trade accord the UK has entered into since its exit from the European Union.
The two nations announced the conclusion of negotiations on May 6. The agreement aims to double bilateral trade to USD 120 billion by 2030. It removes taxes on Indian exports such as leather, footwear, and clothing—sectors seen as labour-intensive—while reducing duties on whisky and car imports from the UK.
A key element of the pact includes a double contribution convention that will exempt UK-based employers of Indian workers from paying social security contributions, easing the financial burden on businesses.
Following today’s signing, the agreement will need approval from the British Parliament. The Indian cabinet has already granted its consent, setting the stage for final ratification.
Under the terms of the deal, 99% of Indian products will receive duty-free access to the UK market, covering almost all of India’s current trade value with the country.
Britain currently ranks as India’s sixth-largest source of foreign investment, with total investments nearing $36 billion. Meanwhile, more than 1,000 Indian companies have established a strong presence across the UK, employing approximately 100,000 people and bringing in $2 billion worth of investment to the British economy.
Additionally, India’s exports to the UK rose by 12.6% to $14.5 billion in 2024-25, while imports from the UK grew by 2.3% to $8.6 billion. Overall, bilateral trade increased to $21.34 billion in 2023-24 from $20.36 billion the previous year.
Inevitably, the two leaders could discuss the crash of an Air India jet in which 260 people died when a London-bound flight crashed in Ahmedabad.
After concluding his engagements in London, Prime Minister Modi will travel to the Maldives at the invitation of President Mohamed Muizzu. The visit is being widely viewed as a breakthrough in bilateral relations following a period of frostiness under President Muizzu’s leadership.
Also Read: ED Raids Anil Ambani-Linked Premises In Money Laundering Probe: Reports https://www.vibesofindia.com/ed-raids-anil-ambani-linked-premises-in-money-laundering-probe-reports/
