Modi’s UK Visit: Aiming for Stronger Ties with FTA

London, July 24, 2025 – Indian Prime Minister Narendra Modi arrived in London on Wednesday for a two-day official visit to the United Kingdom, marking a significant milestone in India-UK relations. The centerpiece of this high-profile diplomatic engagement is the signing of a long-awaited Free Trade Agreement (FTA), which both nations have hailed as a “landmark” achievement set to transform their economic partnership. The visit, which includes meetings with British Prime Minister Keir Starmer and King Charles III, also underscores the deep cultural and people-to-people connections fostered by the vibrant Indian diaspora in the UK.

A Historic Free Trade Agreement

The India-UK FTA, finalized after three years of intense negotiations, is poised to significantly enhance bilateral trade, which currently stands at approximately USD 60 billion. The agreement is expected to double this figure by 2030, creating new opportunities for businesses, boosting job creation, and fostering economic growth in both countries. The FTA eliminates tariffs on 99% of Indian exports to the UK, covering sectors such as textiles, leather, footwear, gems, jewelry, and marine products. In return, 90% of British goods, including whisky, automobiles, and medical devices, will see reduced tariffs in India, with 85% becoming fully duty-free within a decade.

British Prime Minister Keir Starmer described the FTA as a “major win for Britain,” emphasizing its potential to drive employment, lower consumer prices, and strengthen the UK’s post-Brexit trade strategy. For India, the deal marks its first major trade agreement with a Western nation since withdrawing from the Regional Comprehensive Economic Partnership (RCEP) in 2019. Indian Commerce Minister Piyush Goyal, accompanying Modi, will sign the agreement alongside his British counterpart, Jonathan Reynolds, in a ceremony attended by both prime ministers at Chequers, the UK prime minister’s official country residence.

A key highlight of the agreement is a Double Contribution Convention, a social security pact that exempts Indian professionals working in the UK from paying social security contributions for up to three years. This provision is expected to benefit over 60,000 Indian IT workers, saving an estimated USD 473 million annually. The FTA also facilitates greater market access for Indian services in sectors like IT, finance, and education, while offering smoother pathways for Indian students seeking UK education and post-study work opportunities.

Strengthening the Comprehensive Strategic Partnership

Beyond the FTA, Modi’s visit aims to deepen the India-UK Comprehensive Strategic Partnership, established in 2021. The leaders will hold wide-ranging discussions covering trade, investment, technology, innovation, defense, education, sustainability, and health. Modi emphasized the multifaceted nature of the partnership, stating, “Our collaboration spans a wide range of sectors, fostering prosperity, growth, and job creation in both countries. A strong India-UK friendship is essential for global progress.”

The visit comes at a time of growing economic and strategic alignment. The UK, seeking to redefine its global trade relations post-Brexit, views India as a pivotal partner in its “Global Britain” strategy. India, with its rapidly growing economy projected to expand at 6-7% annually, sees the UK as a gateway to advanced technologies and investment opportunities. Bilateral trade in 2024 reached USD 55 billion, a 10% increase from the previous year, with the UK remaining one of India’s top investors, contributing USD 36 billion in cumulative investments.

Engaging the Indian Diaspora

The Indian diaspora, constituting about 2.7% of the UK’s population with over 1.7 million people, played a prominent role during Modi’s visit. Upon arrival, he was warmly welcomed by community leaders, students, and parliamentarians on the outskirts of London. Modi expressed his gratitude on X, saying, “Touched by the warm welcome from the Indian community in the UK. Their affection and passion towards India’s progress is truly heartening.” Kuldeep Shekhawat, President of the Overseas Friends of BJP (OFBJP), described the visit as a significant moment for the diaspora, noting, “It’s a great achievement for both governments, and the diaspora is excited to see the prime minister here after so many years.”

The diaspora serves as a “living bridge” between India and the UK, contributing significantly to British society and economy while strengthening cultural and economic ties. Over 1,000 Indian companies operate in the UK, employing around 100,000 people and contributing nearly USD 2 billion to the economy. The FTA is expected to further enhance these contributions by facilitating greater mobility for Indian professionals and boosting remittance flows, which already reached USD 130 billion in 2024, accounting for 3.3% of India’s GDP.

Broader Strategic Discussions

Modi’s discussions with Starmer will also address critical issues such as defense, security, and regional stability. India has raised concerns about Khalistani extremism in the UK, with Foreign Secretary Vikram Misri emphasizing that the issue is a matter of concern for India and its partners. The UK government has assured India of necessary actions to address these concerns. Additionally, the leaders will review progress in areas like climate action, healthcare, and technology, with a focus on collaboration in artificial intelligence and semiconductors.

Modi’s meeting with King Charles III further highlights the deep historical and cultural ties between the two nations. This visit, Modi’s fourth to the UK since taking office in 2014, follows previous engagements in 2015, 2018, and the 2021 COP26 summit in Glasgow. Over the past year, Modi and Starmer have met twice—on the sidelines of the G20 Summit in Brazil in November 2024 and the G7 Summit in Canada in June 2025—underscoring the sustained high-level engagement between the two countries.

Looking Ahead

From London, Modi will travel to the Maldives on July 25-26 as the Guest of Honour for the island nation’s 60th Independence Day celebrations. His visit aims to strengthen India-Maldives relations, which had faced strains in the recent past, and review progress on the India-Maldives Joint Vision for a Comprehensive Economic and Maritime Security Partnership.

The signing of the India-UK FTA marks a pivotal moment in India’s global economic strategy, reinforcing its position as a confident and integrated player on the world stage. For the UK, the agreement represents a significant post-Brexit trade win, opening up India’s expanding market to British businesses. As Modi noted, “This visit will go a long way in advancing the economic partnership between our nations, fostering prosperity, growth, and job creation for our people.”