Prime Minister Narendra Modi and UK Prime Minister Keir Starmer are set to sign a landmark India-UK Free Trade Agreement (FTA) on Thursday during Modi’s visit to the United Kingdom. The high-impact deal, expected to boost annual bilateral trade by £25.5 billion, marks a major milestone in India-UK relations.
According to the British High Commission, the trade agreement will significantly enhance market access for businesses in both nations, lower tariffs on a wide range of goods, and create thousands of new jobs. It is projected to become India’s most comprehensive trade deal to date and the UK’s most economically meaningful bilateral pact since Brexit.
The two leaders will also unveil the UK-India Vision 2035, a renewed Comprehensive Strategic Partnership that aims to deepen cooperation in defence, innovation, climate action, and education.
The deal will reduce average tariffs on British exports to India—from 15% to 3%—benefiting sectors like automobiles, medical devices, cosmetics, and soft drinks. In return, Indian exporters will gain easier access to the UK market, lowering the cost of Indian goods for British consumers.
British Prime Minister Starmer called the deal “a major win” for Britain, saying, “It will create thousands of British jobs, unlock new opportunities for businesses, and drive growth in every corner of the country.”
The pact includes new defence collaboration through a Defence Industrial Roadmap, enhanced technology cooperation, and commitments to fight organised crime and corruption through intelligence sharing and joint operations.
The UK’s clean energy sector will also gain unprecedented access to India’s green energy procurement markets as part of India’s renewable transition.
Business and Trade Secretary Jonathan Reynolds hailed India as “an emerging economic superpower of the 21st century,” adding that the agreement offers major growth potential for British firms.
Major announcements include:
- Airbus and Rolls-Royce deliveries to Indian airlines as part of £5 billion worth of contracts.
- Expanded opportunities for UK financial and insurance firms with locked-in access and investment caps lifted.
- Stronger collaboration on cybersecurity, migration control, and law enforcement.
PM Modi arrived in London on Wednesday to a warm welcome by the Indian diaspora. His visit marks the first leg of a two-nation tour focused on bolstering India’s global strategic and economic engagements.
