PM Modi’s visit strengthens a strategic partnership grounded in shared values and mutual interests

Perhaps no country has left as much impact in shaping India as the United Kingdom. Though they left more than seven decades back, the UK’s presence is still palpable. Indo-UK relations have been smooth for the most part but have not progressed commercially as they should have. Prime Minister Narendra Modi’s visit to the United Kingdom corrects that anomaly at a decisive moment in the trajectory of Indo-UK relations.

Accompanied by Commerce and Industry Minister Piyush Goyal, Modi’s trip’s biggest takeaway is the signing of a Free Trade Agreement (FTA) — a landmark development that not only deepens economic cooperation but also reaffirms a historical relationship that has evolved significantly in recent decades.

The ties between India and the UK are rooted in a shared, though complex, colonial past. From the struggle for independence to emerging as post-colonial vibrant democracy, India has come a long way.  Over the last two decades, the relationship has transformed into one based on mutual respect, a growing economic partnership and converging strategic interests. Britain is home to a vibrant Indian diaspora that plays an influential role in business, politics, and academia and India continues to rise as one of the UK’s most valued economic and geopolitical partners.

The signing of the Free Trade Agreement marks a historic milestone in this evolving relationship. Concluded after three years of intense negotiations, this agreement represents the most ambitious trade deal undertaken by the UK since its exit from the European Union. For India, it is one of the most comprehensive FTAs with a developed Western economy, reflecting New Delhi’s growing confidence on the global economic stage.

Once ratified by the British Parliament, the FTA will remove tariffs on a wide range of goods and services. Nearly 99 per cent of Indian products, especially labour-intensive exports like leather goods, garments, footwear, and textiles, will gain duty-free access to the UK market. This will significantly boost India’s manufacturing and export sectors, bringing new opportunities for employment and economic growth.

The UK, in turn, will benefit from reduced duties on high-value exports such as whisky and premium automobiles. The agreement is also expected to ease market access and regulations for British firms in the Indian market, which remains one of the world’s fastest-growing consumer economies.

What is significant is that  this trade pact is set to double bilateral trade to $120 billion by 2030 — a target that would redefine the scale and depth of Indo-UK commerce. Beyond goods, the agreement also addresses long-standing concerns around mobility and taxation. A double contribution convention will now exempt Indian companies and their employees from paying social security in the UK — a long-pending demand from Indian industry.

This will reduce the operational burden for the roughly 1,000 Indian companies operating in the UK, which have invested over $2 billion there. Yet, the significance of Modi’s visit goes beyond economics. It signals a renewal of political and strategic trust between two nations navigating a rapidly changing global order. In recent years, both sides have intensified cooperation on defence, cybersecurity, education and technology.

Modi’s visit has provided new impetus to these collaborations, creating platforms for long-term strategic convergence. This renewed engagement also highlights the UK’s shifting global outlook post-Brexit, with India emerging as a central pillar of its Indo-Pacific vision. London’s tilt toward India reflects not just economic pragmatism but also a recognition of India’s growing geopolitical weight.

For India, engaging the UK as a reliable and forward-looking partner in trade, technology, and multilateral affairs adds depth to its foreign policy. As India and the UK step into a more interdependent and multipolar world, this visit sets the tone for a deeper, broader and more resilient bilateral relationship.