PM Modi to Sign Landmark India‑UK Trade Deal
Prime Minister Narendra Modi is scheduled to visit the United Kingdom on July 23 and 24, 2025, in a significant diplomatic move that will see the signing of a long-awaited Free Trade Agreement (FTA) between India and the UK. The agreement, expected to be signed on July 24 by Commerce Minister Piyush Goyal and his British counterpart, is being hailed as a major milestone in India-UK economic relations.
Free Trade Deal to Boost Key Sectors
The FTA will provide duty-free access for Indian exports including garments, textiles, leather goods, and processed food to the UK market. In exchange, tariffs on British goods such as Scotch whisky and luxury cars entering India will be progressively reduced over the next ten years—from the current 150% down to about 40%. This move is expected to boost trade volumes and make high-end UK goods more affordable in India.
Major Relief for Indian Professionals
A key provision of the agreement includes a social security arrangement that will exempt Indian professionals working temporarily in the UK from paying into Britain’s social security system for up to three years. The FTA also simplifies visa processes for Indian chefs, yoga practitioners, classical musicians, and IT professionals, making it easier for them to work and contribute in the UK.
Strategic and Diplomatic Engagements
Modi’s itinerary also includes an audience with King Charles III and a formal state banquet. In his bilateral meeting with Prime Minister Rishi Sunak, discussions are expected to focus on enhancing cooperation in defence, cybersecurity, renewable energy, and higher education partnerships. Both sides are keen to showcase this visit as a revival of post-Brexit strategic relations.
Implementation Timeline
Following the signing, the FTA will undergo legal vetting and parliamentary procedures in both countries. Officials expect the deal to be implemented by mid-2026. The trade agreement is projected to double bilateral trade to nearly $120 billion by the end of the decade, offering substantial benefits for both economies.
