India-UK Free Trade Agreement Gets Cabinet Approval, To Be Signed During PM Modi’s UK Visit

The long-anticipated Free Trade Agreement (FTA) between India and the United Kingdom has received the green light from the Union Cabinet, setting the stage for a historic signing during Prime Minister Narendra Modi’s official visit to London beginning July 23.

According to government sources, the landmark trade pact—finalised in May after years of negotiations—will be formally signed on July 24. Commerce Minister Piyush Goyal and UK Trade Secretary Jonathan Reynolds are expected to sign the deal in the presence of PM Modi and his British counterpart Keir Starmer.

Modi’s Two-Day UK Visit: Diplomacy, Trade, and Royal Meetings

Prime Minister Modi's visit to the UK, his first since Keir Starmer became Prime Minister, will include a bilateral meeting at Chequers, the official country residence of the British Prime Minister. Modi will also meet King Charles III during his July 23–24 trip, as confirmed by Foreign Secretary Vikram Misri.

“This visit, though short, offers both leaders a chance to review the full spectrum of the bilateral relationship and explore deeper cooperation on regional and global issues,” Misri said during a media briefing.

What the India-UK FTA Brings to the Table

Touted as the UK’s largest trade deal post-Brexit, the India-UK FTA is poised to revolutionize bilateral trade. The agreement is expected to:

• Eliminate tariffs on 99% of Indian exports to the UK
• Simplify British exports of goods such as whisky and cars to India
• Expand comprehensive market access for Indian goods across sectors
• Strengthen trade ties in high-value domains like technology and defense

Officials say the FTA covers nearly 100% of trade value across almost all tariff lines. Negotiations began three years ago and concluded with both sides agreeing to a mutually beneficial framework.

Additional Wins: Social Security & Immigration

The deal also includes a double contribution convention, exempting Indian employers from paying social security in the UK for their staff posted abroad—an important relief for Indian businesses.

The trade agreement comes amid the implementation of new UK immigration rules from July 22, which are expected to impact Indian professionals and students.

UK Eyes Political and Strategic Reset

British officials view the FTA not just as an economic milestone but also as a symbol of a broader political reset with India. The UK hopes this deal will pave the way for deeper trust and enhanced cooperation in defense and strategic areas, particularly as India increases its military spending.

Stay tuned for live updates on PM Modi’s UK visit and the official signing of the India-UK Free Trade Agreement.