Indian Prime Minister Narendra Modi is scheduled to visit the United Kingdom this week, marking his first trip to the UK since 2018. The visit, at the invitation of British Prime Minister Keir Starmer, is expected to begin on Wednesday and will focus on strengthening bilateral ties and formally signing the long-awaited India-UK Free Trade Agreement (FTA).
The FTA has been a key focus of discussions between the two nations for several years, with negotiations beginning in January 2022. After 14 formal rounds of negotiations, a deal in principle was announced in May 2025. The agreement aims to reduce tariffs on 90% of traded goods and is projected to boost bilateral trade by £25.5 billion annually. The FTA is expected to provide zero-duty access to 99% of Indian exports, benefiting sectors like textiles, chemicals, leather, and marine products. Apparel exports may double, and chemical exports could grow significantly. The UK will also benefit from tariff cuts on 90% of its goods, with 64% becoming duty-free on day one. The ultimate goal is to double bilateral trade in goods and services by 2030, reaching $120 billion.
Beyond the FTA, the visit will serve as an opportunity to review the Comprehensive Strategic Partnership (CSP) between India and the UK. Discussions are expected to cover a wide range of areas, including trade and economy, technology and innovation, defense and security, climate, health, education, and people-to-people ties. Both countries share mutual interests in diverse areas such as education and research, energy security, climate change, security and defense, and international relations.
The India-UK relationship is founded on a broad range of mutual interests. Approximately 1.5 million people of Indian origin reside in the UK. Both India and the UK are members of the Commonwealth of Nations, the World Trade Organization, and the Asian Development Bank.
The Prime Minister is also expected to meet with King Charles III during his visit. In addition to his engagements in the UK, Modi will also visit the Maldives from July 25 to 26. He will be the guest of honor at the island nation's Independence Day celebrations. Discussions with Maldivian President Mohamed Muizzu will focus on issues of mutual interest and progress on the India-Maldives Joint Vision for a Comprehensive Economic and Maritime Security Partnership.
While the FTA is expected to bring significant benefits, some challenges remain. These include logistics gaps, non-tariff barriers, and weak trade finance, especially for Micro, Small, and Medium Enterprises (MSMEs). Experts have also raised concerns about the UK's carbon tax, which could impact Indian exports. The slow progress of the Bilateral Investment Treaty (BIT) between the two countries is another area of concern.
Despite these challenges, the India-UK FTA is a significant step towards strengthening economic ties and fostering a deeper strategic partnership between the two nations. The agreement is expected to boost India's export potential, improve the mobility of skilled workers, and provide British businesses with greater access to India's expanding market. The FTA is a cornerstone of India-UK collaboration under the framework of the 2030 Roadmap, which aims to elevate the India-UK relationship to a Comprehensive Strategic Partnership.
