Prime Minister Narendra Modi landed in London early Thursday morning for a high-profile visit expected to culminate in the signing of a long-awaited Free Trade Agreement (FTA) between India and the United Kingdom, signaling a transformative moment in bilateral relations.

“This visit will strengthen economic ties and open up new avenues of growth and employment for both our nations,” PM Modi posted on social platform X. “India-UK cooperation is vital for shared global prosperity.”

A Warm Welcome by Indian Diaspora

The Prime Minister was received with enthusiasm by members of the Indian community at the airport. Sharing images of the vibrant welcome, PM Modi wrote:

“Moved by the heartfelt reception from our Indian brothers and sisters in the UK. Their unwavering faith in India’s progress is truly inspiring.”

Turning Point in Indo-British Relations

The centerpiece of this visit is the formal signing of the India-UK FTA with British Prime Minister Keir Starmer. Although the agreement was initially announced on May 6, the final text had awaited legal vetting. The pact follows three years of political turbulence in the UK and comes on the heels of a decisive Labour Party victory.

Calling it a "landmark agreement," PM Starmer said the deal would unlock £25.5 billion in annual trade, create thousands of jobs, and inject momentum into Britain’s economic growth agenda.

“We’re backing businesses, creating better-paying jobs, and putting money back into families’ pockets,” Starmer stated, adding that the deal represents a “new chapter” in UK-India strategic cooperation.

A Win-Win Trade Blueprint

This marks India’s first major FTA with a Western nation since it opted out of the China-backed Regional Comprehensive Economic Partnership (RCEP) in 2019.

Key highlights of the deal include:

• ✅ Elimination of tariffs on 99% of traded goods

• ✅ Boost in India’s textile, leather, and food exports

• ✅ Eased UK access to the Indian market for whisky, premium vehicles, medical devices, and cosmetics

• ✅ Implementation of a Double Contribution Convention Agreement, addressing social security benefits for workers across both nations

According to India’s Commerce Ministry, the FTA is projected to substantially enhance India’s exports while offering UK firms preferential access to one of the world’s fastest-growing markets.

The UK Department for Business and Trade reported that India’s average tariff on British products will fall from 15% to 3%, significantly enhancing the competitiveness of British brands in India.

In a major win for UK’s liquor industry, whisky tariffs—currently at a staggering 150%—will be slashed to 75% immediately, with gradual reductions bringing them down to 40% over the next decade.

Big Names, Big Deals

The visit also saw the announcement of nearly £6 billion worth of new investment and trade agreements, with top British corporations like Airbus, Rolls-Royce, and Unilever expanding operations in India.

Deliveries of Airbus planes—many powered by Rolls-Royce engines—to Indian carriers are expected to commence later this year, enhancing the aviation partnership between the two countries.

Defence, Innovation & 2035 Vision

Beyond trade, the agreement sets the stage for deeper cooperation in defence, innovation, and sustainable development. Both sides are expected to unveil a “Vision 2035” roadmap, outlining joint priorities for the next decade, including clean energy, cybersecurity, and advanced technology.

Prime Minister Starmer emphasized that this was more than just a trade pact—it’s a strategic alignment of two democratic powers with a shared vision of a stable, rules-based global order.