Prime Minister Narendra Modi embarks on a significant two-day visit to the United Kingdom, commencing today Evening (July 23), which is set to solidify India-UK relations. On July 24, Narendra Modi is set to engage in discussions with UK Prime Minister Keir Starmer, with an anticipated audience with King Charles III. A central element of these talks will be the formal signing of the India-UK Free Trade Agreement (FTA), which aims to significantly boost bilateral trade to $100 billion by 2030. The agreement, which has been crafted over 14 negotiation rounds, will remove tariffs on 99% of Indian goods imported into the UK and reduce duties on 90% of British exports.
India-UK Free Trade Agreement
Modi's agenda includes discussions with UK Prime Minister Keir Starmer and King Charles III, focusing on vital issues such as extradition processes for fugitives and the challenges posed by Khalistani extremist groups in the UK. This visit underscores India's strategic ambition to enhance economic ties, bolster security cooperation, and tackle enduring diplomatic challenges, all of which are expected to have substantial implications for India's global position and economic advancements.
Transformative Step for Trade Relations
Scheduled for formal signing on July 24, 2025, the India-UK FTA represents a historic milestone after three years and 14 negotiation rounds. This agreement is projected to almost double bilateral trade, elevating it from $60 billion to an estimated $100 billion by 2030. It will abolish tariffs on 99% of Indian exports to the UK, providing significant advantages for labour-intensive sectors including textiles, leather, marine products, gems and jewellery, toys, and sports goods.
In return, it will reduce tariffs on 90% of British products, simplifying access for UK exports—such as whisky, cars, and engineering goods—to the Indian market. Foreign Secretary Vikram Misri highlighted the FTA's economic potential, affirming that it will “open up export opportunities for India” and enhance commercial relationships. The agreement is anticipated to position India as a leading exporter while attracting British investments in lucrative sectors like auto parts, organic chemicals, and technology. With the UK being India's sixth-largest investor, contributing a cumulative $36 billion, the FTA aims to reduce trade barriers, facilitating reciprocal economic engagement. While ratification is expected to take up to a year due to parliamentary processes in both nations, the FTA is set to reshape economic relations, spurring job creation and fostering innovation. The agreement is also a strategic move for the UK as it seeks to strengthen trade relations with dynamic economies post-Brexit.
British Prime Minister Keir Starmer characterized it as a “milestone in strengthening alliances and reducing trade barriers,” whereas India’s Minister of State for Commerce and Industry, Jitin Prasada, labelled it a “modern, comprehensive, and landmark agreement.” The FTA emphasizes sectors like technology, research, and the knowledge economy, further positioning India as a hub for innovation and skilled labour.
Extradition Negotiations
In addition to trade discussions, Modi's visit will confront pressing security and justice issues, particularly the extradition of high-profile fugitives such as Nirav Modi, Vijay Mallya, and Lalit Modi, who are wanted in India. Foreign Secretary Misri reaffirmed India’s commitment to securing their return, stating, “We have continued to make the case for these fugitives to be rendered to India.” Although legal processes in the UK pose challenges, India is working closely with British authorities to resolve these issues. The ongoing case of Tahawwur Rana illustrates the active bilateral dialogues regarding extradition.
The Indian delegation will also raise concerns about the activities of Khalistani extremists in the UK, which have been a source of strain in bilateral relations. Incidents such as the March 2023 attack on the Indian High Commission in London and a security breach involving External Affairs Minister S. Jaishankar have amplified India's worries. Misri noted that the activities of Khalistani groups "impact social cohesion and order" in the UK, calling on British authorities to act. The UK government has committed to taking necessary measures, with heightened security measures implemented for Modi's visit to deter potential disruptions by pro-Khalistan groups. These discussions are part of India’s broader strategy to confront security threats from abroad while reinforcing diplomatic ties. The focus on extradition and countering extremism illustrates India’s determination to ensure justice and defend its national interests.
Strategic Advantages for India
The FTA and the diplomatic exchanges during Modi’s visit have significant implications for India. Economically, the agreement enhances India's position in labour-intensive and high-skill sectors. The elimination of tariffs on 99% of Indian exports is expected to improve market access, particularly benefiting small and medium enterprises, and ultimately contributing to economic growth. The anticipated increase in bilateral trade aligns with India’s goal of becoming a $5 trillion economy, with the FTA acting as a catalyst for deeper integration into global markets.
Strategically, this visit bolsters the India-UK Comprehensive Strategic Partnership, originally elevated in 2021. Conversations on defense, climate change, innovation, and education, as well as collaboration in critical technologies like artificial intelligence and semiconductors, will enhance India’s technological and security capabilities. Regular military exchanges and initiatives in emerging technologies further establish India as a key player within global innovation frameworks. The emphasis on extradition and countering Khalistani extremism denotes India’s assertive foreign policy stance, signalling a firm intolerance for activities undermining its sovereignty and social stability. Progress in these areas could amplify India’s diplomatic influence, encouraging international cooperation on similar challenges.
Moreover, strengthening ties with the UK—a permanent member of the UN Security Council—reinforces India’s advocacy for reforms in global institutions and its quest for a permanent seat.
Wider Diplomatic Context
PM Modi’s UK visit is part of a broader diplomatic initiative that includes a state visit to the Maldives, where he will be the guest of honour during the 60th Independence Day celebrations.
The Maldives trip, coupled with talks regarding a potential FTA and investment treaty, illustrates India’s strategic efforts to strengthen ties in the Indian Ocean region. In the UK, hosting the talks at Chequers underscores the importance both nations place on their relationship, highlighted by Modi’s previous meetings with Starmer during G20 and G7 summits in 2024 and 2025.
Prime Minister Modi’s visit to the UK is a transformative chapter for India-UK relations, with the FTA positioned to revolutionize economic partnerships while addressing crucial security concerns through discussions on extradition and extremism. The benefits for India are extensive; enhanced market access, increased investment, reinforced security cooperation, and an elevated global presence. As Misri aptly noted, “The sectors of business, technology, research, education, innovation, and the knowledge economy have emerged as key pillars of our bilateral cooperation.” This visit not only solidifies these pillars but also paves the way for India to amplify its economic and diplomatic influence on the world stage.
