Modi’s UK Visit: Key Announcements and Developments During Prime Minister’s Trip

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Modi and Starmer Forge Path for Deeper UK-India Economic Ties

London, UK – Indian Prime Minister Narendra Modi’s visit to the United Kingdom is set to significantly deepen the economic partnership between the two nations, with a crucial free trade agreement (FTA) poised to unlock considerable benefits for both British and Indian businesses and citizens. The impending pact, agreed upon in May after a protracted three-year negotiation period, aims to bolster trade, investment, and innovation across a spectrum of key sectors.

The cornerstone of this enhanced relationship lies in the removal of trade barriers, a move that will grant both countries greater access to each othre’s burgeoning markets. Upon parliamentary and Indian federal cabinet approval, the agreement is expected to dramatically reshape bilateral commerce. This marks Modi’s fourth visit to the UK as Prime Minister, underscoring the strategic importance of these discussions as he continues his diplomatic engagements in the Maldives.

Discussions between Prime Minister Modi and Sir Keir Starmer, leader of the UK’s Labor party, are anticipated to cover a broad agenda, reviewing the robust progress of the Complete Strategic Partnership. This partnership, a testament to the evolving relationship, encompasses vital areas such as trade, investment, technological advancement, defense cooperation, educational exchanges, and a shared commitment to sustainability.

In a statement released this morning, Prime Minister Modi articulated his optimism, stating, “India and UK share a Comprehensive Strategic Partnership that has witnessed significant progress in recent years. During my meeting with Prime Minister Rt Hon Sir Keir Starmer we will have the opportunity to further enhance our economic partnership, aimed at fostering prosperity, growth and jobs creation in both countries.” The indian Prime Minister is also scheduled for a significant, though details remain undisclosed, meeting with His Majesty king Charles.

The tangible benefits of the FTA are already becoming clear. Notably, tariffs on Scotch whisky are set to be slashed from a substantial 150% to 75% instantly, with a further reduction to 40% over the coming decade. India will also implement a phased reduction in duties on cars, moving from 100% to a more accessible 10% under a liberalized quota system. In reciprocation, the UK will offer Indian manufacturers access to its market for electric and hybrid vehicles, also facilitated by a quota-based approach.

Indian commerce ministry officials have confirmed that an impressive 99% of Indian exports to Britain, including textiles, will benefit from zero duties under the new agreement. Conversely, British exporters will see a reduction in 90% of their tariffs. The overarching ambition of the FTA is to double bilateral trade from its current £44 billion by the year 2030, a target that signals a significant uplift in economic activity.

beyond trade, the discussions between the two leaders are expected to delve into critical areas such as defense, climate change strategy, technological innovation, and educational collaboration. “Wide-ranging” talks are also slated to address advancements in Artificial Intelligence and security cooperation, possibly including military exchanges.

The issue of climate change is anticipated to be a prominent topic, notably given the absence of a carbon tax within the current FTA framework. Ajay Srivastava,head of the Global Trade research Initiative in New Delhi,has cautioned that the unresolved nature of carbon taxation could potentially offset the advantages the agreement offers to Indian exporters,highlighting it as a key challenge yet to be addressed. Commerce Minister Piyush Goyal, who spearheaded the three-year negotiation process, will also be present for these pivotal discussions.

What specific investment commitments were made by UK companies during Modi’s visit, and in which sectors will these investments be focused?

Strengthening the UK-India Partnership: A Deep Dive

Prime Minister Narendra Modi’s recent visit to the United Kingdom, concluding on July 23, 2025, has been marked by significant announcements and reinforced commitments to the burgeoning UK-India relationship. This trip focused on bolstering economic ties, defense cooperation, and people-to-people connections. Here’s a detailed breakdown of the key developments:

Economic Collaboration & Trade Deals

The cornerstone of the visit revolved around deepening economic partnerships. Discussions centered on accelerating the ongoing Free Trade Agreement (FTA) negotiations. While a finalized agreement wasn’t signed during this trip, significant progress was reported.

Investment Commitments: Several major UK companies pledged new investments in India, totaling over £8 billion. These investments span sectors like renewable energy, technology, and manufacturing. Key players include Rolls-Royce, focused on jet engine technology transfer, and vodafone, expanding its digital infrastructure investments.

Financial Services & FinTech: A new partnership was announced to promote collaboration in financial services and fintech. This includes joint initiatives to develop innovative financial products and services, particularly in areas like green finance and digital payments. london’s position as a global financial hub was highlighted as crucial to this partnership.

Trade Barriers Addressed: Both governments committed to addressing existing trade barriers, focusing on issues related to agricultural products, intellectual property rights, and regulatory hurdles. A joint working group will be established to monitor progress and resolve outstanding concerns.

UK-India Infrastructure Fund: Expansion of the UK-India Infrastructure Fund was announced, providing additional capital for infrastructure projects in India, with a focus on sustainable development and climate resilience.

Defense and Security Cooperation

Defence and security formed a critical part of the agenda, reflecting shared concerns about regional stability and global security challenges.

Joint military Exercises: Increased frequency and complexity of joint military exercises between the UK and India were agreed upon. These exercises will focus on counter-terrorism, maritime security, and disaster relief.

Technology Transfer in Defence: Discussions progressed on potential technology transfer in the defence sector, particularly in areas like advanced aerospace technology and unmanned systems. This aligns with India’s ‘Make in India’ initiative and the UK’s commitment to supporting indigenous defence capabilities.

Cybersecurity Partnership: A strengthened cybersecurity partnership was announced, involving information sharing, joint research, and capacity building to combat cyber threats.

Maritime Security Dialog: The existing maritime security dialogue was elevated to a ministerial level, reflecting the growing importance of cooperation in the Indo-Pacific region.

People-to-People Connections & Visa Updates

Recognizing the vital role of people-to-people connections, several initiatives were announced to facilitate greater mobility and exchange.

Visa Facilitation: The UK government announced streamlined visa procedures for Indian students and skilled workers. This includes faster processing times and increased adaptability for post-study work visas.The new ‘Graduate route’ visa was specifically highlighted.

‘Living Bridge’ Initiative: Expansion of the ‘Living Bridge’ initiative, promoting cultural exchange, educational partnerships, and tourism between the two countries. This includes increased funding for scholarships and exchange programs.

Healthcare Collaboration: Enhanced collaboration in healthcare, including joint research on medical technologies, exchange of healthcare professionals, and access to affordable medicines.

Diaspora Engagement: Increased engagement with the Indian diaspora in the UK, recognizing their contribution to both countries. Discussions focused on facilitating their participation in the UK-India economic partnership.

Technology and Innovation Focus

The visit underscored the importance of technology and innovation as drivers of growth and collaboration.

AI & emerging Technologies: A joint task force was established to explore collaboration in Artificial Intelligence (AI) and other emerging technologies, including quantum computing and 5G.

Digital Infrastructure: Discussions focused on strengthening digital infrastructure in India, with UK companies offering expertise in areas like smart cities, digital connectivity, and cybersecurity.

Space Cooperation: continued collaboration in space exploration and satellite technology, building on existing partnerships in Earth observation and remote sensing.

Joint research & Development: Increased funding for joint research and development projects in areas of mutual interest, such as clean energy, healthcare, and sustainable agriculture.

Case Study: Rolls-Royce Investment & Technology Transfer

rolls-Royce’s commitment to invest £1.5 billion in India, including technology transfer for jet engine manufacturing, exemplifies the deepening industrial partnership. This investment will not only create jobs in India but also enhance India’s indigenous defence capabilities, reducing reliance on imports. This aligns with the broader ‘Make in India’ initiative and demonstrates the UK’s commitment to supporting India’s strategic autonomy.

benefits for UK businesses

The strengthened UK-India relationship presents significant opportunities for UK businesses:

Access to a Growing Market: India’s rapidly growing economy offers a vast market for UK goods and services.

Reduced Trade Barriers: Ongoing efforts to reduce trade barriers will make it easier for UK companies to access the Indian market.

Investment Opportunities: India’s infrastructure development needs and growing middle class create attractive investment opportunities for UK companies.

Strategic Partnership: The UK-India partnership provides a stable and reliable platform for long-term business growth.