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New Delhi: Prime Minister Narendra Modi on Thursday arrived in London as part of his two-day visit to the UK. Upon landing, the Prime Minister in a post on X said that his visit will go a long way in "advancing the economic partnership" between the two countries. The formalisation of the much-anticipated India-UK free trade deal set to be a major outcome of his trip. The pact is expected to be signed today.
"Landed in London. This visit will go a long way in advancing the economic partnership between our nations. The focus will be on furthering prosperity, growth and boosting job creation for our people. A strong India-UK friendship is essential for global progress," he said on X.
FTA on focus
The signing of the trade deal, officially known as Free Trade Agreement (FTA), is the key agenda of the Prime Minister's visit. Ahead of his formal meeting with PM Modi, his UK counterpart Keir Starmer said the pact is a “major win” for jobs and growth, as tariff cuts bring in cheaper prices on clothes, shoes and food products. India and the UK finalised the trade deal in May this year after three years of negotiations.
"Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change," the UK PM said. Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynolds are likely to sign the deal in presence of prime ministers of both countries.
How will FTA benefit India?
With the signing of the FTA, India’s average tariff on UK products will drop from 15 per cent to 3 per cent. This means, products of British companies like cosmetics, soft drinks, cars, whisky and medical devices will be sold at a cheaper price in the Indian market. The trade pact will benefit 99 per cent Indian exports from tariff.
The two leaders will also hold discussion on wide range of issues including economy, technology, defence, climate, health and education. The meeting will be held at Chequers, the official country residence of the British prime minister that is located 50 km northwest of London. Prime Minister Modi is also scheduled to meet King Charles III, before heading to the Maldives for his visit on July 25-26.
