Indian Prime Minister Narendra Modi begins a two-day visit to the United Kingdom to conclude a free trade agreement on Wednesday.
During the visit, Modi and UK PM Keir Starmer are expected to discuss the full range of bilateral relations between India and the UK. Modi will also pay a visit to King Charles III.
India and the UK announced the conclusion of negotiations on a trade agreement on May 6. The agreement provides for the elimination of taxes on exports of labour-intensive products such as leather, footwear and clothing, as well as cheaper imports of whisky and cars from the UK, which will double trade between the two economies to $120 billion by 2030. After the free trade agreement is signed, it will need to be approved by the British Parliament and the Indian Cabinet before it can come into force. The project will take about a year to implement after the deal is signed.
On July 20, Anna Shotbolt, Deputy Trade Commissioner for South Asia in the UK, announced that the free trade agreement between India and Britain would increase trade by €25.5 billion per year. The agreement provides for a 90% reduction in tariffs on 90% of goods, as well as stronger copyright protection for creative companies. The services sector will also benefit from this agreement.
The Director General of the Federation of Indian Chambers of Commerce and Industry, Ranjit Mehta, highlighted the social security provisions that support Indian professionals in the UK. He called for a rethinking of the benefits of this agreement for both sides.
During the visit, the parties will review progress under the Comprehensive Strategic Partnership (CSP), with a focus on trade and the economy, technology and innovation, defence and security, climate, health, education and people-to-people ties.
Second part of the visit
The second part of the trip will be a state visit to the Maldives on July 25-26 at the invitation of President Mohamed Muizzu. This will be Modi’s third visit to the Maldives and the first visit by a head of state or government to the republic during Muizzu’s presidency.
On July 12, Indian Prime Minister said that the country is rapidly approaching the status of the world’s third largest economy. He added that the manufacturing sector remains one of the main pillars of the Indian economy and is responsible for the creation of a significant number of new jobs.
