PM Modi's UK Visit: India-UK Free Trade Agreement Set to Be Implemented After 3 Years of Talks

Prime Minister Narendra Modi is set to visit the United Kingdom on a two-day official tour at the invitation of UK Prime Minister Keir Starmer. This will be PM Modi’s fourth visit to the UK and comes at a time when India-UK relations are poised for a significant breakthrough.

During the visit, both leaders will hold wide-ranging discussions on enhancing the Comprehensive Strategic Partnership (CSP). Key focus areas include trade and economy, defence, climate change, health, technology, and education. The leaders will also exchange views on regional and global developments.

Major Highlight: Signing of India-UK Free Trade Agreement

A central agenda of the visit is the formal signing of the India-UK Free Trade Agreement (FTA)—a deal that has been under negotiation for three years. The agreement, finalized during a teleconference between the two prime ministers on May 6, 2025, is expected to boost bilateral trade by €25.5 billion annually, according to the British High Commission.

The FTA includes 26 chapters covering goods, services, digital trade, intellectual property rights (IPR), telecom, environment, labour standards, and more. It also provides for tariff reductions on 90% of traded goods, marking it as one of the most comprehensive trade pacts India has ever signed.

PM Modi’s Statement on the FTA

After the agreement was reached in May, PM Modi shared on social media that he was “happy to have spoken to my friend UK Prime Minister Keir Starmer.” He added that the FTA will boost trade, investment, innovation, employment, and prosperity in both nations. PM Modi also expressed optimism about PM Starmer’s visit to India in the near future.

What Is an FTA?

A Free Trade Agreement is a pact between two or more countries to reduce or eliminate tariffs and trade barriers, thereby promoting cross-border trade, investment, and economic growth. FTAs open new markets for businesses and offer consumers access to better, more affordable products.

Strengthening Ties in a New Political Landscape

The Labour Party, under Keir Starmer, returned to power in July 2024 after 14 years. The party’s manifesto committed to forging a new strategic partnership with India, including the signing of an FTA and collaboration in defence, education, technology, and climate action.

India and the UK have had regular high-level engagements in recent years, including bilateral meetings during the G20 Summit in Brazil (November 2024), the G7 Summit in Canada (June 2025), and multiple telephonic conversations.

This visit marks a crucial step in translating years of diplomatic dialogue into actionable economic and strategic outcomes.