PM Modi, UK's Starmer To Sign Landmark Free Trade Deal Soon: 10 Points
Prime Minister Narendra Modi is on his fourth visit to the UK since taking office in 2014 and will hold talks with his UK counterpart Keir Starmer. The two sides will sign the Free Trade Agreement shortly
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Prime Minister Narendra Modi is making his fourth official trip to the United Kingdom since 2014 and will engage in discussions with UK Prime Minister Keir Starmer. The much-anticipated Free Trade Agreement between the two nations will be signed imminently
Key facts about the India-UK free trade agreement:
Commerce and Industry Minister Piyush Goyal is traveling with Prime Minister Modi for this significant diplomatic mission, which promises to strengthen the bilateral relationship between the two nations.
The negotiations for this trade agreement were concluded on May 6, marking the end of three years of detailed discussions.
The agreement aims to eliminate tariffs on exports of labor-intensive Indian products including leather goods, footwear, and textiles, while reducing import duties on British whisky and automobiles. This economic partnership is projected to double bilateral trade to USD 120 billion by 2030.
After the commerce ministers of both countries sign the free trade agreement, it will need to be approved by the British Parliament to become effective, while the Indian cabinet has already approved the deal.
The UK ranks as the sixth-largest investor in India with investments totaling approximately $36 billion. Around 1,000 Indian companies operate in the UK, employing 100,000 people, with total investments of $2 billion.
The agreement will provide duty-free access to 99% of Indian products entering the UK market, covering almost all current trade value.
Beyond the free trade agreement—the UK's largest since Brexit—both countries have also established a double contribution convention that exempts employers of Indian workers from paying social security contributions in the UK.
India's exports to the UK increased by 12.6% to $14.5 billion, while imports grew by 2.3% to $8.6 billion in 2024-25.
Total bilateral trade between India and the UK rose to $21.34 billion in 2023-24 from $20.36 billion in 2022-23.
Following his UK visit, Prime Minister Modi will travel to the Maldives at President Mohamed Muizzu's invitation, signaling a potential improvement in relations after a period of diplomatic tension between the two countries.