India-UK trade deal to be signed during PM Modi’s London visit?

The free trade agreement (FTA) between India and the United Kingdom will be signed on July 24 during Prime Minister Narendra Modi’s visit to London, reports said.

The Union cabinet has approved the pact, officially called the comprehensive economic and trade agreement, which was announced on May 6 after three years of negotiations.

The pact proposes to remove taxes on the export of labour-intensive products such as leather, footwear and clothing, while making imports of whisky and cars from Britain cheaper.

The FTA is expected to double the trade between the two countries to USD 120 billion by 2030.

India will provide access to British suppliers for non-sensitive procurement tenders in the central government, with a threshold of 2 billion rupees.

Once the free trade agreement is signed, it will require approval from the British Parliament before it can take effect.

Earlier this week, Deputy Trade Commissioner for South Asia at the British High Commission, Anna Shotbolt said the India-UK FTA is projected to increase bilateral trade between the two countries by £25.5 billion annually. 

She highlighted that under this FTA, there are provisions for tariff reductions on 90 per cent of traded goods between the two countries. 

India's exports to the UK rose by 12.6 per cent to USD 14.5 billion, while imports grew by 2.3 per cent to USD 8.6 billion in 2024-25.

Modi will visit the UK from July 23-24 on an invitation from British Prime Minister Keir Starmer. This will be Modi’s fourth visit to the UK as the prime minister.

During the visit, the prime minister will hold wide-ranging discussions with Starmer on the entire gamut of India-UK bilateral relations, the External Affairs Minister said in a statement. The two leaders will also exchange views on issues of regional and global importance. 

The two sides will also review the progress of the Comprehensive Strategic Partnership (CSP) with a specific focus on trade and economy, technology and innovation, defence and security, climate, health, education and people-to-people ties, the MEA  said.