The free trade agreement between India and the UK will be signed during PM Modi's visit to London
Prime Minister Narendra Modi is on his fourth visit to the UK since taking office in 2014 and will hold talks with his UK counterpart Keir Starmer. The two sides will sign the Free Trade Agreement shortly
A 10-point cheat sheet on the free trade agreement to be signed by India and the UK
Commerce and Industry Minister Piyush Goyal is accompanying the Prime Minister on this crucial trip, set to usher in a new era in the relationship between the two countries.
The two countries announced the conclusion of negotiations for the trade agreement on May 6. This followed three years of talks on this key issue.
The trade agreement proposes to remove taxes on the export of labour-intensive products such as leather, footwear and clothing, while making imports of whisky and cars from Britain cheaper. The move is expected to double the trade between the two economies to USD 120 billion by 2030.
After the free trade agreement is signed by the commerce ministers of both countries, it will require approval from the British Parliament before coming into effect, as the Indian cabinet has already given its consent to the deal.
Britain is the sixth-largest investor in India, with investments of around $36 billion. There are 1,000 Indian companies in the country, with 1,00,000 employees, with a total investment of $2 billion.
99% of Indian products will receive duty-free access to the UK market, covering nearly all of India's current trade value.
Apart from the free trade agreement, the biggest the UK has done since leaving the European Union, the two sides also sealed a double contribution convention. It provides for an exemption for employers of Indian workers from paying social security contributions in the UK.
India's exports to the UK rose by 12.6% to $14.5 billion, while imports grew by 2.3% to $8.6 billion in 2024-25.
The bilateral trade between India and the UK increased to $21.34 billion in 2023-24 from $20.36 billion in 2022-23.
From London, PM Modi will travel to the Maldives at the invitation of President Mohamed Muizzu in what is being seen as a breakthrough in the ties between the two countries following a spell of frosty ties under Muizzu.
