As Prime Minister Narendra Modi prepares for his two-day state visit to the United Kingdom starting July 23, 2025, significant progress is being made on the India-UK Free Trade Agreement (FTA). Foreign Secretary Vikram Misri stated on Tuesday that both countries are currently engaged in "legal scrubbing" and completing other necessary formalities. The signing of the trade pact is expected to occur on July 24 during the Prime Minister's visit to London.
The India-UK FTA aims to significantly boost bilateral trade, which currently stands around USD 55 billion. According to Misri, the UK is the sixth-largest investor in India, with cumulative investments of $36 billion. Reciprocally, India is also a major investor in the UK, with nearly $20 billion in cumulative FDI. There are close to a thousand Indian companies in the UK, providing employment to nearly 100,000 people and having a cumulative revenue of over $91 billion.
During his visit, PM Modi is scheduled to have extensive discussions with UK Prime Minister Keir Starmer, covering a wide array of bilateral relations, including trade, defence, innovation, climate change, and education. Misri has described the relationship between the two countries as a "Comprehensive Strategic Partnership," a designation formally upgraded in 2021. This partnership has since seen regular high-level political exchanges, with both sides committed to strengthening it further. Key pillars of cooperation include business, technology, research, education, innovation, and the knowledge economy.
In addition to trade and investment, other critical issues are also on the agenda. The presence and activities of Khalistani extremist groups in the UK remain a point of concern in the bilateral relationship. Misri emphasized that this issue "is a cause of concern not only to us, but it should be a matter of concern to our partners as well". India has consistently raised this matter with the UK, stressing the importance of maintaining social cohesion and order. Recent incidents involving pro-Khalistan elements, such as disruptions of film screenings and heckling of Indian officials, have underscored these concerns.
The extradition of high-profile fugitives residing in the UK is another matter under discussion. Misri stated that India continues to pursue the extradition of these individuals, acknowledging the legal processes involved in both countries.
The Comprehensive Strategic Partnership between India and the UK, established in 2021, encompasses various areas of collaboration. Defence cooperation is strengthening, with regular interactions and exercises among the armed forces of both nations. Military instructors have been placed at each other's military academies, and there is an agreement to explore electric propulsion capabilities.
Furthermore, the education sector is witnessing increased collaboration. The University of Southampton recently opened a campus in Gurugram, becoming the first foreign university to establish a campus in India under the New Education Policy.
PM Modi's visit to the UK is expected to significantly boost bilateral ties, fostering progress in trade, technology, and defence. The FTA is in its final stages, undergoing legal review, and is anticipated to be signed during the visit.
