Indian Prime Minister Narendra Modi, currently on his fourth visit to the United Kingdom since 2014, is set to sign a landmark Free Trade Agreement (FTA) with British Prime Minister Keir Starmer today in London. Accompanied by Commerce and Industry Minister Piyush Goyal, PM Modi’s visit marks the conclusion of three years of intense negotiations that culminated on May 6.

The FTA aims to significantly enhance bilateral trade, targeting a two-fold increase to USD 120 billion by 2030. Under the agreement, 99% of Indian products will enjoy duty-free access to the UK market—particularly benefiting labour-intensive sectors like leather, garments, and footwear. In return, Britain will gain easier market access in India for items such as whisky and automobiles.

The trade deal is the most comprehensive trade pact the UK has signed post-Brexit and still awaits approval from the British Parliament, as India’s cabinet has already given its nod.

The agreement will include a social security exemption clause, sparing Indian employers from double social security contributions for workers posted in the UK—a move expected to benefit Indian IT and service companies.

India’s exports to the UK climbed by 12.6% in 2024–25 to $14.5 billion, while imports rose by 2.3% to $8.6 billion. Bilateral trade stood at $21.34 billion in 2023–24, up from $20.36 billion in 2022–23. The UK is currently India’s sixth-largest investor, with cumulative investments of around $36 billion and over 1,000 Indian companies employing 1,00,000 people in Britain.

Indian Prime Minister Narendra Modi, currently on his fourth visit to the United Kingdom since 2014, is set to sign a landmark Free Trade Agreement (FTA) with British Prime Minister Keir Starmer today in London. Accompanied by Commerce and Industry Minister Piyush Goyal, PM Modi’s visit marks the conclusion of three years of intense negotiations that culminated on May 6.

The FTA aims to significantly enhance bilateral trade, targeting a two-fold increase to USD 120 billion by 2030. Under the agreement, 99% of Indian products will enjoy duty-free access to the UK market—particularly benefiting labour-intensive sectors like leather, garments, and footwear. In return, Britain will gain easier market access in India for items such as whisky and automobiles.

The trade deal is the most comprehensive trade pact the UK has signed post-Brexit and still awaits approval from the British Parliament, as India’s cabinet has already given its nod.

The agreement will include a social security exemption clause, sparing Indian employers from double social security contributions for workers posted in the UK—a move expected to benefit Indian IT and service companies.

India’s exports to the UK climbed by 12.6% in 2024–25 to $14.5 billion, while imports rose by 2.3% to $8.6 billion. Bilateral trade stood at $21.34 billion in 2023–24, up from $20.36 billion in 2022–23. The UK is currently India’s sixth-largest investor, with cumulative investments of around $36 billion and over 1,000 Indian companies employing 1,00,000 people in Britain.