India-UK FTA in spotlight as PM Modi begins 2-day London visit tomorrow

Apart from the UK, Prime Minister Narendra Modi will also vist Maldives.

The critical Free Trade Agreement (FTA) between India and the United Kingdom will be in focus as Prime Minister Narendra Modi begins his two-day visit to London tomorrow. A PTI report earlier indicated that the deal is likely to be signed on July 24.

Speaking to the media in New Delhi, Foreign Secretary Vikram Misri described the agreement as “significant.” However, he noted that the finalisation of the pact is still subject to legal scrubbing.

“There was a conversation on May 6 between Prime Minister Modi and the Prime Minister of the UK, during which it was announced that negotiations on the Free Trade Agreement and other related matters had been concluded. Since then, both sides have remained in close contact,” Misri said.

He declined, however, to provide a specific timeline for the signing of the agreement.

The proposed trade pact aims to eliminate tariffs on exports of labour-intensive Indian products such as leather, footwear, and garments, while also making British imports like whisky and cars more affordable in India. The goal is to double bilateral trade between the two economies to $120 billion.

Once signed, the agreement will require approval from the British Parliament and India’s Union Cabinet before it can come into effect. Full implementation is expected to take around a year after the signing.

This will be PM Modi’s fourth visit to the UK, and his second meeting with British Prime Minister Keir Starmer this year. The two leaders previously met on the sidelines of the G7 Summit in Canada. They had also interacted last year during the G20 Summit in Brazil.

Addressing concerns over Khalistani activities in the UK, Misri said that extremist elements should be a matter of concern for India’s international partners as well.

“On the issue of Khalistani extremists and organisations linked to them, we have consistently raised our concerns with the UK. We will continue to do so. This is not only a matter of concern for India—it should also concern our partners, as such elements pose risks to social cohesion and public order in their own countries,” Misri added.

(With agency inputs)