India-UK Free Trade Agreement: Prime Minister Narendra Modi on Wednesday arrived in the United Kingdom in a visit that is poised to further strengthen bilateral ties by signing a historic Free Trade Agreement.

PM Modi landed in London for two-day visit to the United Kingdom.

PM Modi will hold discussions with his UK counterpart Keir Starmer. The two leaders will have the opportunity to further enhance economic partnership, aimed at fostering prosperity, growth and jobs creation in both countries.

The Prime Minister is expected to sign a historic free trade agreement with the UK in order to implement the deal that aims to open up trade between the two countries.

Experts see fresh opportunities amid India-UK FTA

“The India-UK FTA not only strengthens trade but also enhances investment flows, opening new avenues for collaboration in sectors like technology, services, and manufacturing, particularly in cities like London that boast a strong base in innovation. Indian companies will benefit from improved conditions for market access through streamlined work visas, mutual recognition of qualifications, and social security exemptions for professionals, This, in addition to reduced tariffs and simplified regulations for goods, will create fresh opportunities across various industries. Overall, this deal is poised to deepen economic ties and accelerate growth on both sides,” said Hemin Bharucha, Regional Director for India and the Middle East, London & Partners.

Free Trade Deal to boost bilateral trade by $34 billion annually

The landmark FTA would significantly improve market access and boost bilateral trade by around $34 billion annually, the UK said hours before the deal is signed.

India-UK central focus of Modi-Starmer talks

In an interview to PTI, David Lammy said the UK-India Free Trade Agreement (FTA) will naturally be a central focus of the Modi-Starmer talks, and described the deal as a testament to the strength of the partnership between the two nations.

Modi, Starmer to unveil new India-UK Vision-2035 roadmap

A new UK-India Vision-2035 roadmap will be unveiled by Prime Minister Keir Starmer and his Indian counterpart Narendra Modi on Thursday to set “clear goals and milestones” across a range of areas such as defence, technology and energy, British Foreign Secretary David Lammy said in an interview with PTI.

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Domestic Stock markets opened flat on Thursday, anticipating investor sentiments to turn positive with India and the UK set to formalise the Free Trade Agreement (FTA) later in the day.

The Nifty 50 index opened at 25,243.30, gaining 23.40 points or 0.09 per cent, while the BSE Sensex opened at 82,789.23, marking a gain of 62.59 points or 0.08 per cent.

India to get British whisky, cars and more

In May, India and the UK sealed the free trade agreement, which is expected to benefit 99 per cent of Indian exports from tariffs. The agreement will also make it easier for British firms to export whisky, cars, and other products to India, boosting the overall trade basket.

Most ambitious FTA to date

“The objective is to have the Free Trade Agreement land,” High Commissioner Doraiswami said on the eve of the visit.

“It is a detailed and ambitious document, which is probably our most ambitious Free Trade Agreement to date… It will have a very important impact upon both economies and help drive growth in both countries,” he said.

Provisions in the India-UK Free Trade Deal

The trade deal, firmed up after three years of negotiations, is expected to ensure comprehensive market access for Indian goods across all sectors and India will gain from tariff elimination on about 99 per cent of tariff lines (product categories) covering almost 100 per cent of the trade values, according to officials.

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Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynolds are likely to sign the FTA in the presence of the two prime ministers on Thursday, people familiar with the matter said.

What is the India-UK FTA?

Earlier in May, India and the UK sealed the free trade agreement that is expected to benefit 99 per cent Indian exports from tariff and will make it easier for British firms to export whisky, cars and other products to India besides boosting the overall trade basket.

PM Modi’s departing speech

In his departure statement, Modi said India and UK share a comprehensive strategic partnership that has witnessed significant progress in recent years.

“Our collaboration spans a wide range of sectors, including trade, investment, technology, innovation, defence, education, research, sustainability, health and people-to-people ties,” he said.