PM Modi Arrives in London to Sign Landmark India-UK Free Trade Deal

PM Modi in London to Sign Landmark India-UK Free Trade Agreement

Indian Prime Minister Narendra Modi arrived in London on Thursday for a high-profile visit, the highlight of which is the signing of a long-awaited and transformative Free Trade Agreement (FTA) with the United Kingdom. The deal is being hailed as a turning point for both countries that will redefine their economic and strategic partnership for the future.

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Packed Diplomatic Agenda

During his brief visit, PM Modi is scheduled to hold wide-ranging talks with his British counterpart, Keir Starmer, at Chequers, the Prime Minister's official country residence. He will also have a meeting with King Charles III. The discussions are expected to focus on strengthening the India-UK Comprehensive Strategic Partnership, which covers sectors ranging from trade and technology to defence and education.

Upon his arrival, PM Modi was greeted by members of the Indian diaspora, whose enthusiasm he acknowledged in a social media post. "A strong India-UK friendship is essential for global progress," he stated, emphasizing that the visit aims to further prosperity and job creation in both countries.

The Economic Core of the Agreement

The FTA is the culmination of three years of negotiations and represents India's first major trade deal with a Western nation since it withdrew from the China-led RCEP talks in 2019. The primary goal is to more than double the bilateral trade volume from the current $55 billion to $120 billion by 2030.

The agreement will achieve this by significantly reducing or eliminating tariffs on the vast majority of goods. According to the UK's Department for Business and Trade, the average Indian tariff on British goods will fall from 15% to just 3%. For India, the deal promises tariff elimination on approximately 99% of its exports to the UK.

This will have a tangible impact on consumers and businesses. British producers of high-end automobiles, cosmetics, and medical devices will gain greater access to the vast Indian market. Notably, the steep 150% tariff on British whisky will be immediately halved to 75%, with a gradual reduction to 40% over the next decade. For India, the agreement is expected to provide a major boost to key export sectors like textiles and leather products.

A "Major Win" for Both Nations

UK Prime Minister Keir Starmer described the FTA as a "landmark" achievement and a "major win for Britain," projecting that it would create thousands of jobs and drive economic growth across the country. The deal is also accompanied by nearly £6 billion in new investment and export agreements, with major companies like Airbus and Rolls-Royce set to expand their operations in India.

Ultimately, this visit and the signing of the FTA mark a deliberate and strategic effort by both India and the UK to forge a modern, forward-looking partnership. Moving beyond historical ties, they are building a new relationship based on shared economic interests and a joint vision for growth and stability in the 21st century.