Economics

PM Modi’s UK Visit to Strengthen Strategic Ties and Trade

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Prime Minister Narendra Modi’s upcoming visit to the United Kingdom, his fourth since taking office, signals a renewed momentum in India-UK relations. Scheduled for today, the visit will focus on advancing the implementation of the Free Trade Agreement (FTA) currently undergoing ratification, deepening strategic ties, and fostering cooperation in technology and innovation. The Ministry of External Affairs (MEA) has confirmed that PM Modi will engage in comprehensive discussions with his UK counterpart, Sir Keir Starmer, covering the full spectrum of bilateral relations and exchanging perspectives on regional and global issues.

The India-UK relationship, rooted in historical ties, has evolved into a robust and multifaceted partnership, formally elevated to a Comprehensive Strategic Partnership in May 2021. High-level engagements have been frequent, with PM Modi and Sir Keir Starmer meeting twice in the past year

 at the G20 Summit in Rio de Janeiro in November 2024, and the G7 Summit in Puglia, Italy, in June 2025. These meetings, supplemented by multiple telephonic exchanges, underscore the depth of political dialogue between New Delhi and London.

The economic dimension of this partnership has seen remarkable growth, with bilateral trade reaching a record £43 billion (approximately USD 55 billion) in 2024, a 10% increase from the previous year. The landmark FTA, politically announced on 6 May 2025 by both leaders, marks a significant milestone but is still pending formal ratification. In a statement at the time, Sir Keir Starmer described the agreement as the UK’s most significant post-Brexit trade deal, though Indian officials have characterised it as a major step rather than their most ambitious to date. However, the current Labour government’s broader economic policies have raised concerns among some UK business leaders, who argue that increased regulation could hinder the full potential of such agreements.

In his address at the ABP Network India@2047 Summit, PM Modi emphasised the transformative potential of the FTA, noting, “The coming together of two of the world’s largest open market economies will not only bolster their histories but also create new opportunities, particularly for the MSME sector.” This agreement is expected to unlock opportunities in key sectors such as business, technology, research, education, and innovation, which have become cornerstones of India-UK cooperation.

Recent institutional dialogues further highlight the strength of this partnership. In June, Indian Foreign Secretary Vikram Misri and UK Permanent Under-Secretary Philip Barton co-chaired the 17th UK-India Foreign Office Consultations and the inaugural Strategic Exports and Technology Cooperation Dialogue. These discussions focused on advancing collaboration in trade, technology, defence, and people-to-people exchanges. Earlier, in May, UK Foreign Secretary David Lammy described the FTA as “the start of supercharging our £43 billion trading relationship”, underscoring its strategic and economic potential, though full implementation remains contingent on parliamentary approval.

The Indian diaspora, constituting approximately 2.5% of the UK’s population, remains a vital bridge between the two nations.
Their contributions to British society and the economy, alongside their role in fostering cultural and economic ties, continue to strengthen bilateral bonds.

During today’s visit, PM Modi and Sir Keir Starmer will review the progress of the Comprehensive Strategic Partnership, with a particular emphasis on trade, technology, defence, security, climate, health, education, and cultural exchanges. While the FTA is a significant step forward, questions remain about how the Labour government’s domestic policies might affect its implementation. As both nations navigate a complex global landscape, this visit offers an opportunity to solidify a partnership that balances economic ambition with strategic alignment.

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