PM Modi in London: India and UK sign historic free trade agreement

As a part of the UK visit of Prime Minister Narendra Modi, India and UK have signed a Free Trade Agreement (FTA) on Thursday (24 July 2025). Upon his arrival today, Prime Minister Narendra Modi met with the UK PM Keir Starmer at the Chequers Estate, the official country residence of the UK. PM Modi is also going to review India's ties with the UK. The leaders will also discuss various issues, including technology, investment, climate, defence, trade, and migration. 

India-UK trade deal: An impact

FTA was signed between Union Minister Piyush Goyal and his UK counterpart Jonathan Reynolds in the presence of Prime Minister Narendra Modi and the UK Prime Minister Keir Starmer. The Free Trade Agreement (FTA) between India and UK will lead to a significant boost in the bilateral trade, around $34 billion annually. FTA will also improve market access, as stated by the British Government. 

At present, there are 1000 Indian companies operating in the UK, which employ over 1 lakh people with investments of about $20 billion. About 99% of the Indian goods will be exempted from duty in the UK market. Products from various industries, including textiles, footwear, gems, jewelry, automobiles, machinery, chemicals, sports goods, furniture, and pharmaceuticals. 

The Prime Ministers will also unveil 'UK-India Vision 2035', advancing the partnership further as the global dynamics continue changing. A UK Government statement said, "The leaders will unveil their vision for a modern, reinvigorated partnership over the next decade." The 'UK-India Vision 2035' replaces the former framework '2030 Roadmap' in 2021 during the tenure of UK PM Boris Johnson. 

FTA is also significant concerning UK, as it is the first economically significant bilateral trade deal for it, ever since its exit from the European Union (EU). UK PM Keir Starmer said, "Our landmark deal with India is a major win for Britain." UK will benefit in automobiles, alcohol and luxury goods, along with professional access, social security, and government procurement. 

India's External Affairs Minister (EAM) S. Jaishankar and UK Chancellor Reeves were also present during the signing. 

PM Modi will also meet the British Monarch, King Charles III, during his visit. After London, he will head to the Maldives, which seems to be a major turnaround in ties between India and the island nation. The visit will strengthen the economic and maritime partnerships.