Modi to Visit UK Next Week to Sign Landmark India–UK Trade Deal

Prime Minister Narendra Modi will visit the United Kingdom (UK) on 23–24 July 2025 to formally sign the India-UK Free Trade Agreement (FTA), a significant milestone in bilateral relations following three years of negotiations. The deal aims to deepen economic cooperation, reduce tariffs, and strengthen strategic ties in a globalised trade environment.

According to senior Indian officials, the agreement will provide duty-free or reduced-tariff access for Indian exports, such as textiles, leather goods, and electric vehicles (EVs), into the UK. In exchange, British exports like Scotch whisky, cars, and food products will benefit from significantly lower tariffs in India. Import duties on Scotch whisky are set to fall from 150% to 75% immediately and further to 40% over the next decade. Car tariffs will drop from 100% to 10% within a quota framework.

The agreement also includes liberalisation of trade in services and provisions for professional mobility. UK exporters of medical devices, food, and consultancy services will receive improved market access, while bilateral visa arrangements are expected to ease skilled worker movement. Some opposition Members of Parliament (MPs) have raised concerns over potential pressure on the domestic labour market.

Government projections suggest the FTA will increase UK gross domestic product (GDP) by approximately £4.8 billion and eliminate tariffs on around 99% of Indian exports to the UK and 90% of UK exports to India. Both countries aim to double bilateral trade to US$120 billion by 2030, reflecting India’s rapidly growing consumer base and the UK’s post-Brexit pursuit of new markets.

Modi’s UK visit also signals a strategic alignment with Britain’s Indo-Pacific policy. The FTA is viewed as a key element in the UK’s efforts to strengthen its geopolitical influence beyond Europe. For India, the deal supports its ambition to position itself as a global export and manufacturing hub.

The FTA will require formal approval from the UK Parliament and ratification by India’s federal Cabinet. If passed, the agreement is expected to come into force in mid-to-late 2026.

From a centre-right perspective, the agreement delivers clear economic and strategic benefits. It reflects a commitment to free markets, international competitiveness, and diplomatic engagement with high-growth economies. However, its long-term success will depend on effective implementation, fair competition safeguards, and responsible oversight of labour mobility provisions.