Prime Minister Narendra Modi is in the United Kingdom on July 24, 2025, to sign a "landmark" free trade agreement (FTA) with his British counterpart, Keir Starmer. The FTA, which has been under negotiation for three years, is expected to significantly boost bilateral trade and strengthen the Comprehensive Strategic Partnership between the two nations.
The India-UK FTA is projected to increase bilateral trade by $34 billion annually. The agreement will eliminate tariffs on 99% of Indian exports to the UK and reduce tariffs on 90% of British goods. Bilateral trade reached a record USD 55 billion in 2024, a 10% increase from the previous year, and the FTA is expected to further accelerate economic engagement.
The FTA is expected to create thousands of British jobs, unlock new opportunities for businesses, and drive growth across the UK. British Prime Minister Keir Starmer hailed the deal as a "major win for Britain" that will stimulate the economy and raise living standards. The agreement is projected to add £4.8 billion to the UK economy and £2.2 billion in wages every year.
Under the FTA, Indian consumers will benefit from improved access to British products, such as soft drinks, cosmetics, cars, and medical devices, as average tariffs drop from 15% to 3%. The UK will also benefit from liberalized tariffs on Indian goods, making it cheaper for British consumers and businesses to buy Indian products. Tariffs on British whisky will be slashed in half immediately, from 150% to 75%, and then gradually reduced to 40% over the next ten years. India will reduce duties on a limited number of car imports from 100% to 10% under a quota.
The agreement will also ease mobility for professionals, including contractual service suppliers, business visitors, investors, and intra-corporate transferees. A Double Contribution Convention (DCC) will prevent double social security contributions by Indian professionals working temporarily in Britain.
Alongside the FTA, Prime Ministers Modi and Starmer will unveil "UK-India Vision 2035," a plan to deepen cooperation in trade, defense, climate, education, and innovation. The "UK-India Vision 2035" agreement marks a "step-change" in bilateral ties for the next decade and aims to strengthen defense cooperation and drive innovation between both economies. The two leaders are expected to discuss technology, investment, climate, defense, trade, and migration.
During his visit, Prime Minister Modi is scheduled to meet with King Charles III. He will also address concerns about Khalistani extremists operating from UK soil, a long-standing issue for India. Following his UK visit, Modi will travel to the Maldives to attend its 60th Independence Day celebrations and meet President Mohamed Muizzu.