Although this was Prime Minister Modi’s first visit to the UK since Prime Minister Keir Starmer took office in July 2024, bilateral relations have continued to strengthen.
Over the past year, the two leaders have met at international forums twice and held multiple phone conversations, demonstrating their growing engagement since the UK and India upgraded their ties to a comprehensive strategic partnership in 2021.
Prime Minister Modi’s visit drew widespread international attention, not only due to the close ties between two major economies of Asia and Europe, but also because of the signing of this significant FTA.
Prime Minister Modi described the agreement as a historic milestone that will boost trade, investment, job creation and innovation. Prime Minister Keir Starmer also emphasised the substantial benefits it will bring to British people and businesses.
The agreement is expected to significantly enhance bilateral trade volume by removing numerous trade barriers and expanding market access.
Under the FTA, 99% of Indian exports to the UK will enjoy zero tariffs, including key products such as textiles, jewellery, auto parts, leather goods, and pharmaceuticals. In return, tariffs on 90% of British exports to India will also be reduced gradually.
India’s Minister of Commerce and Industry Piyush Goyal stressed that the FTA is not the final destination but the beginning of a new chapter in UK–India relations. The agreement lays the foundation for reaching the goal of 120 billion USD in two-way trade by 2030 and strengthening both economies’ resilience in the face of global uncertainties.
For the UK, this marks an important step in its post-Brexit strategy to expand its global trade network. The agreement with India helps reduce tariff pressures and opens greater export opportunities for British flagship products such as whisky and cars in a market of over 1.4 billion people. In doing so, the UK not only boosts economic growth but also strengthens its presence in the promising Indo-Pacific region.
Meanwhile, the benefits for the Indian economy are equally evident. In addition to the removal of tariff barriers in the UK market, the agreement significantly enhances the competitiveness of labour-intensive sectors such as textiles, leather, sports goods, jewellery, and organic chemicals. The Indian Government hopes that the FTA will accelerate the “Make in India” campaign and stimulate foreign direct investment flows.
Although Prime Minister Narendra Modi’s visit to the UK lasted only two days, it marked the beginning of a long journey - cooperation towards the common goal of bringing bilateral relations into a new chapter of increasingly comprehensive, profound and enduring ties.
