Major Free Trade Agreement Expected to Boost Bilateral Trade by $34 Billion
🔴 Developing Story — Updates will be added as the trade deal unfolds.
✈️ PM Modi Arrives in London to Strengthen Strategic & Economic Ties
Prime Minister Narendra Modi has begun a two-day official visit to the United Kingdom, marking a pivotal moment in India’s global trade diplomacy. The visit is primarily focused on finalizing the long-awaited India-UK Free Trade Agreement (FTA), which could redefine bilateral relations in terms of trade, defense, technology, and cultural exchange.
🤝 India-UK Free Trade Agreement on the Brink of Finalization
The Free Trade Agreement, expected to be signed during this visit, includes key provisions such as:
- Major tariff reductions on whisky, automobiles, textiles, and leather goods
- Increased market access for electric vehicles, IT services, and pharmaceuticals
- Strengthened regulations on professional mobility and digital trade
The agreement is anticipated to boost annual bilateral trade by up to ₹2.8 lakh crore (approx. $34 billion) over the next 15 years.
🏛️ High-Level Meetings Scheduled
PM Modi is set to hold formal discussions with UK Prime Minister Keir Starmer at the British PM’s country residence. The two leaders are expected to:
- Officially announce the India‑UK FTA
- Launch the India-UK Strategic Vision 2035
- Collaborate on defense technology, artificial intelligence, and climate initiatives
A potential audience with King Charles III is also on the cards.
📈 Economic Implications: What the FTA Means for Both Countries
| Sector | Proposed Benefit |
|---|---|
| Whisky | Tariff to reduce from 150% to 40% over time |
| Automobiles | Duty reduction under quota-based exports |
| Textiles & Leather | Duty-free access for Indian manufacturers |
| Electric Vehicles | Greater export opportunity for UK businesses |
| Services | Streamlined visa rules for Indian professionals |
This is likely the UK’s most ambitious trade pact post-Brexit and a critical step in India’s push to strengthen ties with Western economies.
💬 PM Modi on the Visit
The Prime Minister described his UK visit as a move toward “expanding economic opportunity, technological partnership, and people-to-people ties.” He emphasized the importance of “shared prosperity and mutual growth,” reinforcing the strategic significance of the partnership.
🧭 What’s Next?
- The formal signing of the FTA is expected during the visit
- Implementation timeline: The deal could roll out within 12 months, pending ratification by both nations
- The next stop on PM Modi’s agenda: The Maldives, for their Independence Day celebrations from July 25–26
⚠️ Disclaimer
This is a developing story. Information is subject to change based on official announcements and ongoing bilateral discussions.
Also Read : India-UK Free Trade Agreement Enters Final Stage of Negotiations
