Modi in London to sign historic India-UK free trade agreement
What's the story
Prime Minister Narendra Modi arrived in London for an official visit on Thursday. The highlight of his trip is the signing of a landmark Free Trade Agreement (FTA) between India and the United Kingdom. This deal is considered a major political and economic achievement for both countries, especially amid global trade tensions. For Britain, this is the most economically significant trade deal since it left the European Union, while for India, it's its first major free trade deal outside Asia.
Trade boost
FTA to cover trade, investment, technology, innovation sectors
The FTA is expected to deepen the India-UK Comprehensive Strategic Partnership (CSP), covering sectors such as trade, investment, technology, innovation, defense, and health. "Our collaboration spans a wide range of sectors, including trade, investment, technology, innovation, defense, education, research, sustainability, health, and people-to-people ties," said PM Modi before departing. PM Modi's visit also aims to eliminate or reduce tariffs on imports and exports between both nations. The target is a bilateral trade volume of $120 billion by 2030.
Twitter Post
Modi in London
Landed in London.
— Narendra Modi (@narendramodi) July 23, 2025
This visit will go a long way in advancing the economic partnership between our nations. The focus will be on furthering prosperity, growth and boosting job creation for our people.
A strong India-UK friendship is essential for global progress. pic.twitter.com/HWoXAE9dyp
Diplomatic talks
Modi-Starmer talks likely to focus on defense, technological cooperation
During his visit, PM Modi will hold talks with British Prime Minister Keir Starmer. The two leaders are likely to discuss trade, defense, and technological cooperation. In addition to holding extensive talks with Starmer, Modi will also meet King Charles III. From London, Modi will depart for the Maldives at the request of President Mohamed Muizzu, in what is being considered as a breakthrough in the relations between the two countries.
Negotiation wins
Key concessions secured by India during FTA negotiations
India and the UK sealed the FTA in May. The deal will see zero tariffs on 99% of Indian exports to the UK, covering gems, textiles, and engineering goods. In exchange, the UK will receive gradual tariff reductions on 90% of its exports to India. Scotch whisky duties will be reduced from 150% to 75% immediately, then to 40% over the next 10 years. British cars, currently facing over 100% tariffs, will see charges reduced to 10% under a quota.
Visit milestones
PM's 4th official visit to UK since taking office
In 2023-24, bilateral trade between the two countries exceeded $55 billion. The United Kingdom is India's sixth-largest investor, with $36 billion invested thus far, and almost 1,000 Indian enterprises in Britain employ approximately 100,000 people. Indian investments in the UK are close to $20 billion. This is PM Modi's fourth official visit to the UK since he took office. He had earlier visited in 2015, 2018, and 2021 for the COP26 summit in Glasgow.