London, July 24, 2025 – Indian Prime Minister Narendra Modi landed in London for a two-day official visit, focusing on signing a historic Free Trade Agreement (FTA) to strengthen India-UK economic ties. This landmark deal, coupled with Modi’s engagement with the Indian diaspora and meetings with UK Prime Minister Keir Starmer and King Charles III, underscores the deepening strategic and cultural partnership between the two nations. Here’s everything you need to know about this pivotal moment for India-UK relations.

India-UK Free Trade Agreement: A Game-Changer

The India-UK FTA, finalized after three years of negotiations, is set to revolutionize bilateral trade, currently valued at USD 60 billion. By 2030, the agreement aims to double this figure, fostering economic growth, job creation, and business opportunities. Key highlights include:

• Tariff Reductions: 99% of Indian exports, such as textiles, leather, gems, jewelry, and marine products, will face zero tariffs in the UK. Similarly, 90% of British goods, including whisky, automobiles, and medical devices, will enjoy reduced tariffs in India, with 85% becoming duty-free within a decade.
• Social Security Pact: A Double Contribution Convention exempts over 60,000 Indian IT professionals in the UK from social security contributions for up to three years, saving approximately USD 473 million annually.
• Market Access: The FTA enhances opportunities for Indian services in IT, finance, and education, while easing pathways for Indian students seeking UK education and post-study work visas.

This agreement, signed by Indian Commerce Minister Piyush Goyal and UK’s Jonathan Reynolds at Chequers, marks India’s first major trade deal with a Western nation since exiting the RCEP in 2019. For the UK, it’s a cornerstone of its post-Brexit “Global Britain” strategy, boosting employment and consumer savings.

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Deepening the India-UK Strategic Partnership

Modi’s visit strengthens the India-UK Comprehensive Strategic Partnership, launched in 2021. Discussions with Starmer will cover trade, investment, technology, defense, education, sustainability, and health. Key points include:

• Economic Growth: Bilateral trade hit USD 55 billion in 2024, up 10% from the previous year. The UK remains a top investor in India, with USD 36 billion in cumulative investments.
• Technology and Innovation: Collaboration in AI, semiconductors, and climate action is a priority, aligning with India’s goal to access advanced technologies and the UK’s focus on innovation.
• Defense and Security: India raised concerns about Khalistani extremism, with the UK assuring action to address these issues.

This visit, Modi’s fourth to the UK since 2014, builds on recent meetings at the G20 Summit (Brazil, 2024) and G7 Summit (Canada, 2025), reinforcing high-level engagement.

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Celebrating the Indian Diaspora in the UK

The 1.7 million-strong Indian diaspora, forming 2.7% of the UK’s population, welcomed Modi warmly. He acknowledged their role as a “living bridge,” stating on X, “The Indian community’s passion for India’s progress is truly inspiring.” The diaspora contributes significantly, with over 1,000 Indian companies in the UK employing 100,000 people and generating USD 2 billion in economic activity. The FTA will further boost remittance flows, which reached USD 130 billion in 2024 (3.3% of India’s GDP).

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High-Level Engagements and Future Plans

Modi’s meeting with King Charles III highlights the deep historical and cultural ties between India and the UK. From London, Modi will travel to the Maldives on July 25-26 as the Guest of Honour for its 60th Independence Day, aiming to bolster India-Maldives relations under the Joint Vision for Comprehensive Economic and Maritime Security Partnership.

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Why This Matters for India and the UK

The India-UK FTA positions India as a confident global economic player and opens the UK’s market to Indian businesses. For the UK, it’s a major post-Brexit trade win, enhancing access to India’s booming economy, projected to grow at 6-7% annually. As Modi noted, “This visit will advance our economic partnership, fostering prosperity and growth for both nations.”

Sources: India Today, News18, Business Standard, The Independent, The Tribune, Times of India

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