PM Modi in London for Two-Day Visit; Maldives Trip to Follow
India and the United Kingdom are set to sign a landmark Free Trade Agreement (FTA) during Prime Minister Narendra Modi’s two-day visit to London. It is to strengthen economic and strategic ties. The agreement, finalised after years of negotiations, promises to eliminate tariffs on nearly all Indian exports and open new avenues for British businesses in India.
What is the India–UK Free Trade Agreement (FTA)?
A Free Trade Agreement (FTA) is a pact between two nations that removes or reduces barriers to the exchange of goods and services, including import tariffs, duties, and restrictions. The aim: make trade easier, cheaper, and more beneficial for both sides.
The India–UK FTA, set to be signed on July 24, is being described as historic because:
-
It eliminates tariffs on 99% of Indian exports, opening up UK markets significantly.
-
British exports—like whisky, cars, and technology products—will also gain easier access to India.
-
It’s the biggest trade deal the UK has struck post-Brexit.
- It includes social security exemptions for Indian workers in the UK under a double contribution convention.
PM Modi Departs for the UK
Prime Minister Narendra Modi left for the United Kingdom on July 23 for a two-day visit, with the final signing of this FTA being the central agenda. The Indian cabinet cleared the deal a day before his departure.
“Leaving for UK, a country with which our Comprehensive Strategic Partnership has achieved significant momentum in the last few years. I look forward to my talks with PM Keir Starmer and my meeting with His Majesty King Charles III.”
This marks Modi’s fourth visit to the UK as Prime Minister. According to MEA Spokesperson Randhir Jaiswal, PM Modi will next head to the Maldives as Guest of Honour at their Independence Day.
🗨️ Randhir Jaiswal on X:
“PM @narendramodi has embarked on an official visit to the United Kingdom… In the second leg, he will undertake a State Visit to Maldives and participate at the 60th anniversary celebrations of its Independence.”
High-Level Engagements in London
During his UK visit, Modi will hold talks with Prime Minister Keir Starmer at Chequers, the British PM’s official residence.
He will also meet King Charles III, marking a continuation of strong diplomatic ties.
The FTA will be signed by Commerce Minister Piyush Goyal and UK Business Secretary Jonathan Reynolds in the presence of both prime ministers. (Date: July 24, Venue: Chequers, near London)
What’s at Stake in the FTA
The deal has been in the works since 2022 and is set to reshape trade flows between India and the UK. Key takeaways include:
-
Tariff-free access for nearly all Indian goods.
-
Market entry for British liquor, autos, and pharmaceuticals.
-
Exemption for Indian workers from social security payments in the UK.
-
Stronger intellectual property and digital trade rules.
Bilateral trade between India and the UK has already reached $55 billion (2023–24).
The UK is India’s 6th-largest investor, while 1,000 Indian companies in the UK employ nearly 100,000 people.
Security agencies in the UK have reportedly taken steps to prevent disruptions by pro-Khalistan groups. India’s concerns have been conveyed, and additional coordination measures are in place.
Strategic Areas of Cooperation
Beyond trade, India and the UK are working closely in:
-
Defence: Joint military training and cooperation on electric naval propulsion.
-
Technology: The Technology Security Initiative (TSI) focuses on AI, semiconductors, and quantum tech.
-
Education: British universities are now setting up campuses in India, starting with the University of Southampton in Gurugram.
Foreign Secretary Vikram Misri described the visit as
“an opportunity to take stock of the entire bilateral relationship and explore regional and global issues of mutual interest.”
A Strategic Reset in the Maldives
After the UK visit, PM Modi will fly to Malé on July 25 to join Maldives’ 60th Independence Day celebrations at the invitation of President Mohamed Muizzu.
PM Modi on X:
“I am honoured to be taking part in the 60th Independence Day celebrations of the Maldives. This year we also mark 60 years of India–Maldives diplomatic relations. The talks with President Muizzu will certainly add momentum to bilateral ties across diverse sectors.”
Ties between India and the Maldives had become tense after President Muizzu, who is seen as leaning closer to China, came to power. This visit by PM Modi is being seen as a chance to improve the relationship and bring both countries back on the same page—especially under the shared MAHASAGAR Vision, which focuses on working together for peace, growth, and security in the region.
During his visit, PM Modi is also expected to launch several development projects in the Maldives that are supported by India.
