PM Modi Celebrates Historic India-UK Trade Deal During London Visit

Prime Minister Narendra Modi received a warm welcome from the Indian diaspora in London during his arrival for a two-day visit on July 23, 2025. Expressing his gratitude, Modi highlighted the community’s affection and passion for India’s progress. This visit, he noted, aims to strengthen the economic partnership between India and the United Kingdom.

The signing of the India-UK Free Trade Agreement (FTA) stands out as a pivotal moment in Modi’s itinerary. He emphasized the significance of the UK as a partner, stating that the Comprehensive Strategic Partnership has gained considerable momentum over recent years. “A strong India-UK friendship is essential for global progress,” Modi remarked, underscoring the deal’s role in promoting prosperity and job creation in both nations.

The FTA, which has been in negotiation since January 2022, is poised to greatly enhance Indian exports. Nearly 99% of Indian goods sent to the UK will now benefit from zero-duty access. This change will eliminate tariffs ranging from 4% to 16%, with particular advantages for sectors including textiles, leather, footwear, toys, marine products, gems and jewellery, and engineering goods such as auto components and electric vehicles.

British Prime Minister Keir Starmer characterized the upcoming FTA as a “major win” for jobs and economic growth. He noted that tariff reductions would lead to lower prices on essential goods such as clothing, footwear, and food products. Furthermore, Starmer announced that Indian firms are poised to invest nearly GBP 6 billion in new initiatives in the UK, while British businesses will gain access to new opportunities in India.

In addition to the trade agreement, Modi and Starmer are expected to renew the Comprehensive and Strategic Partnership, fostering closer collaboration on defence, education, climate, technology, and innovation. Starmer reaffirmed the importance of this trade deal, stating, “It will create thousands of British jobs across the UK, unlock new opportunities for businesses, and drive growth in every corner of the country, delivering on our Plan for Change.”

This visit not only strengthens ties between India and the UK but also signals a commitment to mutual growth and innovation. As the two leaders prepare to finalize the FTA and other agreements, the impact of their discussions is anticipated to resonate across both nations, ultimately benefiting their respective populations.