Prime Minister Narendra Modi will visit the UK from July 23 to July 24 on an official visit that could witness the signing of the long-awaited free trade agreement (FTA) between the two countries.

Modi’s visit is taking place at the invitation of UK Prime Minister Keir Starmer and would mark his fourth visit to the UK, according to a statement by the ministry of external affairs (MEA).

During the visit, Modi will hold wide-ranging discussions with Prime Minister Starmer on the entire gamut of India-UK bilateral relations.

FTA signing

While the statement did not confirm whether the FTA would be signed during the visit, sources have earlier indicated that the text of the agreement is ready, and it is likely to be signed during Modi’s trip.

The conclusion of FTA negotiations was formally announced on May 6. Since then, legal teams from both sides have been working to finalise the legal text for signing.

Once the agreement is signed, it will be made public and will then require ratification by both countries before coming into force. The signing will be carried out by the trade ministers of India and the UK.

In the UK, ratification involves a parliamentary process, which could take up to a year. In India, ratification is done by the Union cabinet, making it possible that the FTA will take up to a year after signing to become operational.

“The two sides will also review the progress of the Comprehensive Strategic Partnership (CSP) with a specific focus on trade and economy, technology and innovation, defence and security, climate, health, education and people-to-people ties,” the MEA statement added.

Discussions will cover regional and global developments. The Prime Minister is also expected to call on King Charles III during the visit.

FTA promises greater trade, mobility, and market access

The FTA will remove taxes on the export of labour-intensive products from India such as leather, footwear and clothing, while making imports of whisky and cars from Britain cheaper.

India will remove or reduce tariffs on 90% tariff lines, which will cover 92% of existing goods imports from the UK. The UK will eliminate tariffs on 99% of Indian goods which covers almost all of India’s exports to the US. India also got more visa commitments in the FTA.

The FTA also eases mobility for professionals including contractual service suppliers; business visitors; Investors; intra-corporate transferees; partners and dependent children of intra-corporate transferees with right to work; and even independent professionals like yoga instructors, musicians and chefs.

In services the both sides have agreed to provide national treatment (same treatment as domestic companies) in select services including telecom, construction and environment. In banking and insurance India has agreed to commit to 74% Foreign Direct Investment (FDI) limit for companies from the UK. While this FDI limit already exists for other foreign investors too, the commitment in FTA will protect companies from the UK in case the government decides to reduce FDI limits in future. The FTA also gives UK access to government procurement.

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After his UK visit, the Prime Minister will be on a state visit to Maldives from July 25 – 26, 2025. He will be the ‘Guest of Honour’ at the celebrations of the 60th anniversary of the Independence of Maldives on July 26.

During the visit, the Prime Minister will meet Maldives President Mohamed Muizzu and hold discussions on issues of mutual interest. “The two leaders will also take stock of the progress in the implementation of the India-Maldives Joint Vision for a ‘Comprehensive Economic and Maritime Security Partnership’, adopted during the State Visit of the President of Maldives to India in October 2024.