PM Modi lands in UK; India, UK to sign historic free trade agreement

Prime Minister Narendra Modi is in the United Kingdom on his fourth visit since taking office in 2014, where he is set to hold high-level talks with newly elected British Prime Minister Keir Starmer. The discussions will cover a wide range of areas, including trade, healthcare, clean energy, education, and security.

Touched by the warm welcome from the Indian community in the UK. Their affection and passion towards India’s progress is truly heartening. pic.twitter.com/YRdLcNTWSS

— Narendra Modi (@narendramodi) July 23, 2025

The highlight of the visit would be the signing of a landmark Free Trade Agreement (FTA) between the two nations.

Below are the key points:

India and the UK are poised to sign a long-awaited Free Trade Agreement today in London, with Commerce and Industry Minister Piyush Goyal accompanying PM Modi for the ceremony.

The agreement follows the conclusion of negotiations on May 6 after nearly three years of complex discussions. It is the most significant trade pact signed by the UK since leaving the European Union.

The FTA will eliminate tariffs on several Indian exports including leather goods, garments, and footwear. In return, British exports such as whisky and automobiles will see reduced import duties in India, with the goal of doubling bilateral trade to $120 billion by 2030.

While the Indian cabinet has already approved the agreement, it will still need to pass through the UK Parliament before coming into force.

The UK remains one of India’s top investors, with cumulative investments totaling $36 billion. Over 1,000 Indian companies operate in Britain, employing around 100,000 people and contributing nearly $2 billion.

Under the agreement, 99% of Indian goods will receive duty-free access to the UK market, significantly expanding India's export footprint.

In a key additional accord, both sides have agreed on a social security arrangement that exempts Indian employees in the UK from paying certain social security contributions, easing the burden on Indian employers abroad.

In 2024–25, India’s exports to the UK increased by 12.6% to $14.5 billion, while imports rose modestly by 2.3% to $8.6 billion.