Indian Prime Minister Narendra Modi arrived in the United Kingdom on Wednesday for a high-profile diplomatic visit aimed at finalizing a long-awaited India-UK free trade agreement — a deal both sides hail as a transformative economic milestone.
The pact, which has been under negotiation since 2021, will slash tariffs, expand market access, and is expected to significantly boost bilateral trade and investment.
During his brief visit, Modi will hold talks with newly elected British Prime Minister Sir Keir Starmer and meet King Charles III at Buckingham Palace.
Under the agreement: India will reduce tariffs on British exports such as whisky, gin, and cars — a win for UK manufacturers and spirits producers.
In return, Britain will increase imports of Indian textiles, gemstones, and auto components, among other goods.
The UK is also expected to open its market to Indian electric and hybrid vehicles, a move that could further fuel India’s green tech ambitions.
The UK government projects the deal will inject £4.8 billion annually into the British economy, while bilateral trade is expected to reach £68 billion by 2040, up from £42.6 billion in 2023.
Though the deal was politically approved by India’s Cabinet earlier this week, and finalized in May after years of negotiation, it will still need to clear the UK Parliament, which could delay implementation by up to a year.
Speaking on the social platform X in May, Modi called the agreement a “historic milestone” that is “ambitious and mutually beneficial.”
He added that it would serve as a catalyst for “trade, investment, innovation, job creation, and sustainable growth” in both economies.
Starmer echoed that sentiment on Wednesday, calling the deal a “landmark” achievement that will “create thousands of British jobs, unlock new opportunities for UK businesses, and drive long-term economic growth.”
This marks Modi’s fourth visit to the UK since becoming Prime Minister in 2014. While trade is at the heart of the visit, diplomatic sources say the leaders will also discuss last month’s tragic Air India crash, in which 260 people died after a London-bound flight crashed in Ahmedabad, Gujarat — a devastating blow that touched families in both countries.
The India-UK trade agreement comes at a moment of shifting global alliances, with both nations seeking to diversify economic partnerships amid a changing geopolitical landscape. For the UK, the deal is a crucial post-Brexit win; for India, it marks another step in its push to become a global economic and manufacturing powerhouse.
