PM Modi Likely To Visit London Next Week To Sign India-UK Free Trade Agreement, Strengthen Defence Ties

The landmark deal, three years in the making, is expected to boost trade, investment, and jobs in both nations while strengthening their comprehensive strategic partnership. The Ministry of Commerce has set the end of July as the deadline for officials to get the trade deal signed, sources quoted by Politico stated.

India-UK FTA To Unlock New Trade Opportunities

According to PTI, India-UK FTA is expected to eliminate tariffs on nearly 99 per cent of Indian exports to the UK and ease market access for British goods such as whisky and cars. Both sides have worked intensively since 2021 to iron out differences and finalise the pact, which is set to become the UK’s biggest trade agreement since Brexit. The agreement also includes a double contribution convention, aimed at encouraging greater investment flows between the two countries. “The Free Trade Agreement is a historic milestone that will catalyse trade, investment, growth, and job creation for both economies,” PM Modi said earlier this year

During the visit, PM Modi and his British counterpart Keir Starmer are likely to discuss deepening defence and security cooperation. The two sides may also review the implementation of the Technology Security Initiative (TSI), which focuses on collaboration in critical areas like telecom, semiconductors, artificial intelligence and critical minerals. Signed last year, the TSI aims to elevate the India-UK strategic partnership through stronger technology cooperation and resilient supply chains. It also seeks to build upon the ambitious cooperation agenda set out in the India-UK Roadmap 2030.

PM Modi To Visit Maldives to Rebuild Bilateral Relations

After his UK visit, PM Modi is expected travel to the Maldives as the chief guest for the island nation’s 60th National Day celebrations. Maldives President Mohamed Muizzu extended the invitation in a bid to reset ties, which had soured due to the “India Out” campaign and Muizzu’s perceived pro-China tilt. This will be PM Modi’s first visit to the Maldives since June 2019. Diplomatic sources told PTI the visit is seen as an opportunity to clear misunderstandings, reaffirm India’s ‘Neighbourhood First’ policy, and bolster cooperation in the Indian Ocean Region.

The free trade pact is expected to take about a year to come into full effect. Once operational, it will lock in tariff reductions on 90 per cent of tariff lines, with 85 per cent becoming fully tariff-free within a decade, according to British officials. In the financial year 2023-24, India remained the UK’s second-largest source of investments by project count for the fifth consecutive year, highlighting strong economic ties that are set to grow further under the new agreement. With back-to-back visits to the UK and the Maldives, Prime Minister Modi aims to showcase India’s commitment to strengthening global trade partnerships and rebuilding ties with its immediate neighbourhood.