Prime Minister Narendra Modi has arrived in the United Kingdom on his fourth official visit since 2014. During his trip, he will meet the newly elected British Prime Minister, Keir Starmer. Their discussions will focus on key areas like trade, healthcare, clean energy, education, and security. The major highlight of the visit will be the signing of a landmark Free Trade Agreement (FTA) between the two countries.

Key Highlights:

India and the UK are expected to officially sign the long-awaited Free Trade Agreement today in London. PM Modi will be joined by Commerce and Industry Minister Piyush Goyal for the signing ceremony.

This agreement comes after almost three years of complex negotiations, which concluded on May 6. It is the UK’s most significant trade deal since it exited the European Union.

The FTA will remove tariffs on several Indian exports, including leather goods, garments, and footwear. In exchange, India will reduce import duties on British items such as whisky and cars. The ultimate goal is to double trade between the two nations to $120 billion by 2030.

Although the Indian cabinet has already approved the deal, it still needs to be passed by the UK Parliament before it becomes active.

The UK is one of the biggest investors in India, with investments totaling around $36 billion. Meanwhile, over 1,000 Indian companies operate in the UK, employing about 100,000 people and contributing close to $2 billion to the British economy.

Once the agreement is in place, 99% of Indian products will have duty-free access to the UK market, greatly benefiting Indian exporters.

Another important part of the deal is a new social security arrangement. This will exempt Indian workers in the UK from paying certain social security contributions, helping reduce costs for Indian companies working abroad.

In the financial year 2024–25, India’s exports to the UK rose by 12.6% to $14.5 billion, while imports from the UK went up slightly by 2.3% to $8.6 billion.