PM Modi Arrives in London Ahead of Crucial India-UK Free Trade Agreement Signing

PM Modi in London for Landmark India-UK Free Trade Agreement Signing

Prime Minister Narendra Modi arrived in London early Thursday for a two-day official visit, ahead of the highly anticipated signing of a historic Free Trade Agreement (FTA) between India and the United Kingdom. The agreement, long in the making, is being described by both sides as a turning point in bilateral relations.

In a post on X (formerly Twitter), PM Modi wrote, “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.”

Upon arrival, the Prime Minister was welcomed warmly by the Indian diaspora in the UK. Sharing photos of the reception, he added, “Touched by the warm welcome from the Indian community in the UK. Their affection and passion towards India’s progress is truly heartening.”

Why This Visit Is Significant

The centerpiece of PM Modi’s visit is the formal signing of the FTA with UK Prime Minister Keir Starmer. Although the agreement was announced on May 6, the final text had been undergoing legal reviews. The deal is particularly notable as it comes on the heels of a major political shift in the UK following a Labour Party landslide victory in the recent elections.

Calling the FTA a “landmark” and a “major win for Britain,” PM Starmer said it would boost bilateral trade by £25.5 billion annually, create thousands of British jobs, and unlock major opportunities for businesses across both nations. “We’re putting more money in the pockets of hardworking Brits and helping families with the cost of living,” he stated.

Highlights of the India-UK FTA

This trade agreement is India's first major FTA with a Western country since opting out of the China-led RCEP in 2019. Key highlights of the pact include:

• 99% tariff elimination covering nearly all trade value.
• Indian exports of textiles, leather goods, and other sectors to get a major boost.
• UK gains include reduced tariffs on high-end cars, medical devices, cosmetics, and soft drinks.
• Whisky tariffs to drop from 150% to 75% immediately and gradually to 40% over 10 years.
• Inclusion of a Double Contribution Convention Agreement — a social security arrangement between the two countries.
• India’s average tariff on British goods to fall from 15% to 3%.

According to the UK Department for Business and Trade, this agreement could pave the way for long-term cooperation in sectors such as innovation, intellectual property, and government procurement.

Massive Investment Boost

British officials also confirmed that nearly £6 billion in new investments and export deals have been secured. Twenty-six UK companies, including Airbus and Rolls-Royce, are planning significant expansions in India. Notably, upcoming Airbus deliveries to India will mostly be powered by Rolls-Royce engines.

A New Vision for 2035

The agreement also serves as a stepping stone toward a new bilateral vision for 2035, with plans to strengthen defense cooperation and enhance mutual economic growth.

As both nations prepare to sign this groundbreaking trade pact, the visit signals a bold step toward a more integrated and prosperous India-UK partnership.