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During his time in London, PM Modi is expected to finalise and sign a comprehensive Free Trade Agreement (FTA) with the UK—a culmination of more than three years of negotiations
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. @Keir_Starmer@RoyalFamily…
— Narendra Modi (@narendramodi) July 23, 2025
This pact is set to further strengthen the India–UK Comprehensive Strategic Partnership, covering key sectors like trade, economy, technology, security, energy, education, and health
What the Deal Entails
Tariff Reductions:
- India will cut tariffs on nearly 90% of UK goods; Scotch whisky and gin duties will halve from 150% to 75%, and then drop to 40% over a decade.
- Automobile import duties will fall from 100% to 10% under specified quotas
- UK to offer duty‑free access to 99% of Indian exports, including textiles, electric vehicles (EVs), gems, and machinery
Services & Mobility:
- Enhanced access for Indian professionals (such as musicians, chefs, yoga instructors) to work in the UK.
- A Double Social Security Convention will exempt Indian workers in the UK from national insurance contributions for up to three years
Public Procurement & Investment:
- UK firms gain access to non-sensitive Indian public tenders (estimated at ~£38 billion annually)
- The deal is projected to increase bilateral trade by approximately £25–26 billion annually by 2040, and contribute about £4.8 billion annually to UK GDP .
High-Level Engagements
- Modi–Starmer Talks: On July 24, PM Modi will meet UK PM Keir Starmer to review bilateral relations and launch the trade pact
- Royal Audience: A courtesy call with King Charles III is also scheduled
- Beyond Trade: Discussions will span energy, security, education, and climate partnerships.
Following the UK visit, Modi will travel to the Maldives for a state visit (July 25–26) to further strengthen regional ties.
Day after tomorrow, 25th July, I will be in the Maldives at the invitation of the President Dr. Mohamed Muizzu. 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…
— Narendra Modi (@narendramodi) July 23, 2025
The FTA will undergo legal vetting and must be ratified by both the Indian Cabinet and the UK Parliament. The deal is expected to be officially operational within about a year