Commerce and Industry Minister Piyush Goyal is set to travel with Prime Minister Narendra Modi to the United Kingdom this week for the formal signing of the India-UK Free Trade Agreement (FTA), a senior official confirmed on Monday.
The visit, scheduled for July 23–24, comes at the invitation of UK Prime Minister Keir Starmer and will mark Modi’s fourth official trip to the UK.
On May 6, Prime Minister Modi and his British counterpart, Sir Keir Starmer, had together announced the signing of the India-UK Free Trade Agreement, which both countries celebrated as a major milestone. The agreement is expected to drive bilateral trade volumes to $120 billion by 2030.
As per official sources, the pact was sealed after a telephonic meeting between the two leaders. As per the terms of the pact, almost all Indian products—approximately 99%—sent to the UK will have zero-duty access, substantially enhancing India's export competitiveness.
The FTA has the potential to generate huge opportunities for India's export industries, particularly the highly labor-intensive ones. These are textiles, marine products, leather, footwear, toys, sports goods, and gems and jewellery. Other industries like engineering, auto components, and organic chemicals will also benefit significantly.
Trade in services will also receive a substantial fillip. The pact is likely to improve market access for Indian businesses in areas such as IT and ITeS, finance, legal and professional services, education, and other business services.
One of the major gains for India in the agreement is the social security agreement. Indian professionals and their employers will not have to pay social security contributions in the UK for a period of three years under the Double Contribution Convention. It is likely to enhance cost competitiveness for Indian service providers and add ease of movement for skilled Indian laborers.
On the British side, the FTA will also cut import duty on some British goods like whisky and electric vehicles, making them more accessible to Indian consumers.
While there, Prime Minister Modi will engage in wide-ranging talks with Prime Minister Starmer, with all the aspects of bilateral relations discussed. The leaders will also share views on major regional and global developments.
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