The Prime Minister was received at the airport by UK Foreign Office Minister in charge of the Indo-Pacific Catherine West
Prime Minister Modi in United Kingdom to sign key Free Trade Deal. Prime Minister Narendra Modi’s recent visit to the United Kingdom marks a significant milestone in India-UK relations, characterized by the signing of a pivotal Free Trade Agreement (FTA) and a renewed commitment to the Comprehensive Strategic Partnership (CSP). This high-profile visit, Modi’s fourth to the UK, underscores the deepening ties between the two nations, aiming for enhanced economic collaboration, prosperity, and job creation.
The highlight of PM Modi’s agenda was undoubtedly the signing of the long-anticipated FTA. This landmark agreement is set to revolutionize bilateral trade, with both nations targeting an ambitious bilateral trade volume of USD 120 billion by 2030. In 2023-24, bilateral trade had already surpassed USD 55 billion, demonstrating a strong foundation for future growth. The FTA is designed to significantly reduce or eliminate tariffs on a wide range of goods, making products from both India and the UK more competitive in their respective markets. For instance, India is expected to gain duty-free access for 99% of its products to the UK, benefiting labour-intensive sectors like textiles, footwear, and gems. Conversely, India will reduce tariffs on nearly 90% of UK goods, including substantial cuts on British whisky and certain automobile categories. This mutual market access is poised to create new opportunities for businesses and consumers alike.
Beyond trade, the visit aimed to reinvigorate the India-UK Comprehensive Strategic Partnership. As PM Modi stated in his departure statement, the collaboration extends across a diverse array of sectors, including “trade, investment, technology, innovation, defence, education, research, sustainability, health and people-to-people ties.” Discussions with British Prime Minister Keir Starmer, hosted at the official country residence Chequers, focused on strengthening these multifaceted connections. The leaders are also anticipated to unveil a “UK-India Vision 2035,” which will outline a roadmap for cooperation in areas such as defence, clean energy, and innovation, including a new Defence Industrial Roadmap for closer military and industrial collaboration. This comprehensive approach reflects a shared vision for a robust and future-oriented partnership.
The enthusiastic welcome received by Prime Minister Modi from the Indian diaspora in London underscored the strong cultural and community bonds between the two countries. As Kuldeep Shekhawat, President of the Overseas Friends of BJP (OFBJP) diaspora group, remarked, the visit, though short, provided a valuable opportunity for the community to greet their leader. Such people-to-people connections are a vital component of the broader strategic partnership.
During his packed schedule, Prime Minister Modi also held a significant meeting with King Charles III. These high-level engagements at the highest echelons of both governments signify the importance and depth of the relationship. It’s noteworthy that PM Modi and PM Starmer have already met twice in the past year, at the G20 summit in Rio de Janeiro and the G7 summit in Kananaskis, Canada, highlighting their ongoing dialogue and commitment to strengthening bilateral ties.
The UK’s role as India’s sixth-largest investor, with USD 36 billion invested to date, further underscores the economic significance of this partnership. Moreover, nearly 1,000 Indian companies operate in Britain, employing approximately 100,000 people, with Indian investments in the UK standing at close to USD 20 billion. The FTA is expected to build on these existing strong investment ties, fostering further growth and collaboration.
PM Modi’s visit to the UK has successfully heralded a new era in India-UK relations. The signing of the landmark Free Trade Agreement, coupled with a renewed push for the Comprehensive Strategic Partnership, sets a clear trajectory for enhanced economic prosperity, strategic alignment, and deeper cooperation across a wide spectrum of sectors. This visit not only strengthens the bilateral bond but also serves as a testament to the growing global influence of both India and the United Kingdom.