PM Modi's UK Visit: A Landmark FTA Achievement

Strategic Insights -

Prime Minister Narendra Modi's arrival in the UK ahead of the formal signing of the long-awaited Free Trade Agreement (FTA) between India and the UK marks a significant turning point in bilateral relations. The agreement, which has been extensively discussed for three years, has finally been finalized, and its signing is expected to be the centerpiece of PM Modi's visit. British Prime Minister Keir Starmer has hailed the FTA as a "landmark" achievement and a "major win for Britain," emphasizing its potential to create thousands of British jobs, unlock new opportunities for businesses, and drive growth across the UK.

Key Takeaways:

  • The FTA is expected to boost bilateral trade by 25.5 billion pounds yearly, with an emphasis on creating thousands of British jobs and unlocking new opportunities for businesses.
  • The agreement offers tariff elimination on approximately 99 per cent of tariff lines, covering nearly 100 per cent of trade value, with India's average tariff on British goods falling from 15 per cent to 3 per cent once the FTA is in effect.
  • British companies, including Airbus and Rolls-Royce, will benefit from greater access to the Indian market for goods ranging from soft drinks and cosmetics to cars and medical devices.
  • Whisky producers will see tariffs halved immediately, dropping from 150 per cent to 75 per cent, and then gradually reduced to 40 per cent over a decade.
  • Approximately 6 billion pounds in new investment and export agreements have been secured, with 26 British companies poised to expand in India.
  • The deal includes a Double Contribution Convention Agreement, a social security pact between the two countries, and addresses key issues such as innovation, government procurement, and intellectual property rights.

Statistics:

  • The FTA is expected to boost bilateral trade by 25.5 billion pounds yearly.
  • Approximately 99 per cent of tariff lines will be tariff-free, covering nearly 100 per cent of trade value.
  • India's average tariff on British goods will fall from 15 per cent to 3 per cent once the FTA is in effect.
  • Whisky producers will see tariffs reduced from 150 per cent to 40 per cent over a decade.
  • Approximately 6 billion pounds in new investment and export agreements have been secured.

Sources:

  • IE Online Media Services Pvt. Ltd. (Copyright 2025)
  • The UK's Department for Business and Trade