Prime Minister Narendra Modi arrived in the London early Thursday, ahead of the formal signing of a long-awaited Free Trade Agreement (FTA) between India and the United Kingdom, marking what both countries have described as a turning point in bilateral relations.
“This visit will go a long way in advancing the economic partnership between our nations,” PM Modi said in a post on X, formerly Twitter. “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.”
PM Modi was greeted by members of the Indian diaspora upon his arrival. Sharing photographs of the welcome on social media, he wrote: “Touched by the warm welcome from the Indian community in the UK Their affection and passion towards India’s progress is truly heartening.”
Why the visit holds significance
The signing of the trade deal with British Prime Minister Keir Starmer is expected to be the centerpiece of PM Modi’s visit. Though the agreement was announced on May 6, the final text was pending legal scrubbing. It comes after three years of political upheaval in Britain and follows a sweeping Labour Party victory in the recent general elections.
Starmer described the FTA as a “landmark” achievement and a “major win for Britain.” He said the agreement would “create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change.”
“We’re putting more money in the pockets of hardworking Brits and helping families with the cost of living,” Starmer added. “We’re determined to go further and faster to grow the economy and raise living standards across the UK.”
The pact is India’s first major trade agreement with a Western nation since it withdrew from talks on the China-led Regional Comprehensive Economic Partnership (RCEP) in 2019. The deal ensures broad market access for goods and services, and addresses key issues such as innovation, government procurement and intellectual property rights. It also includes a Double Contribution Convention Agreement — a social security pact between the two countries.
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For India, the agreement is expected to boost exports of textiles and leather products, while easing British access to the Indian market for high-end automobiles and whisky. According to India’s Commerce and Industry Ministry, the FTA offers tariff elimination on approximately 99 per cent of tariff lines, covering nearly 100 per cent of trade value.
According to the UK’s Department for Business and Trade, India’s average tariff on British goods will fall from 15 per cent to 3 per cent once the FTA is in effect. British companies will benefit from greater access to the Indian market for goods ranging from soft drinks and cosmetics to cars and medical devices. Whisky producers will see tariffs halved immediately, dropping from 150 per cent to 75 per cent, and then gradually reduced to 40 per cent over a decade.
British officials also announced that nearly 6 billion pounds in new investment and export agreements had been secured. Twenty-six British companies, including Airbus and Rolls-Royce, are poised to expand in India. Airbus aircraft deliveries to India — more than half powered by Rolls-Royce engines — are set to begin soon.
