Britain’s Business and Trade Secretary Jonathan Reynolds is meeting Indian Commerce Minister Piyush Goyal Tuesday to discuss implementing the pact and pushing forward with talks on the as-yet-unfinished investment treaty that goes with it
Keir Starmer plans to formally sign the UK-India trade deal with Narendra Modi on a visit to India this summer. Starmer has touted the deal as part of his success on the international stage since it was agreed in early May after three years of talks. At the G20 summit late last year, Britain’s leader accepted an invitation from Modi to visit India.
Meanwhile, Foreign Secretary David Lammy called on Prime Minister Narendra Modi on Saturday. India’s Ministry of External Affairs (MEA) said that Modi expressed satisfaction at the successful conclusion of the India-UK Free Trade Agreement and Double Contribution Convention and appreciated the constructive engagement by both sides that led to this milestone.
Britain’s Business and Trade Secretary Jonathan Reynolds is meeting Indian Commerce Minister Piyush Goyal Tuesday to discuss implementing the pact and pushing forward with talks on the as-yet-unfinished investment treaty that goes with it. The two are meeting in Paris on the sidelines of the OECD trade ministers meeting.
India’s parliament is “very fond” of the deal, said Indian MP Ravi Shankar Prasad. “It shows the depth of our relationship,” Prasad, who is leading a delegation of parliamentarians visiting the UK this week, told reporters at the Indian High Commission in London Tuesday.
The pact is the most valuable trade deal the UK has struck since leaving the EU, and could increase the UK’s GDP by £4.8 billion by 2040, according to British estimates.Modi also welcomed the growing momentum in bilateral ties and expressed satisfaction at the deepening of the India-UK Comprehensive Strategic Partnership. He welcomed the continued collaboration under the Technology Security Initiative and noted its potential to shape trusted and secure innovation ecosystems.
The statement noted that Foreign Secreatary David Lammy conveyed UK’s strong interest in further enhancing cooperation across key sectors including trade and investment, defence and security, technology, innovation, and clean energy. He expressed confidence that the FTA will unlock new economic opportunities for both countries.
“The two leaders exchanged views on regional and global issues. UK Foreign Secretary strongly condemned the Pahalgam terror attack and expressed support for India’s fight against cross-border terrorism. PM Modi underscored the need for a decisive international action against terrorism and those who support it,” the statement said.
The statement also noted that PM Modi conveyed his warm greetings to the UK Prime Minister Keir Starmer and reiterated the invitation to visit India at the earliest mutual convenience. Prime Minister Narendra Modi met the United Kingdom’s Foreign Secretary David Lammy on Saturday and shared the details in a post on X.
Modi appreciated the progress made in the India-UK Comprehensive Strategic Partnership and also mentioned the recently concluded FTA between the two countries. He appreciated the UK’s support to India in the fight against cross-border terrorism.
The deal aims to cut through high tariffs on U.K. goods in India with 85 percent becoming tariff-free within a decade. The effect will be equivalent to slashing £1 billion in tariffs after 10 years. Measures include immediately slashing India’s 150 percent tariff on Scotch whisky in half before it is cut to 40 percent after ten years. Duties on the auto sector will drop from 100 percent to 10 percent with quotas on both sides for the sensitive sector.
Indian duties will also be lowered on cosmetics, aerospace, medical devices, electrical machinery and agriculture and food. Britain will lower tariffs on textiles, footwear, frozen prawns and other food products.
While UK negotiators resisted granting more visas for Indian students studying in the UK, the Indian side has talked up an ““unprecedented” win on its workers being exempt from employee tax contributions in Britain — triggering some pushback from UK opposition parties.
The official text of the agreement has not yet been published and will only be delivered to parliaments in both countries once Starmer and Modi sign the pact. Indian officials have said the deal is currently undergoing legal scrubbing so that it can be signed within three months of its agreement, which took place on May 6. Modi wrote on X, “Pleased to meet UK Foreign Secretary Mr. David Lammy. Appreciate his substantive contribution to the remarkable progress in our Comprehensive Strategic Partnership, further strengthened by the recently concluded FTA. Value UK’s support for India’s fight against cross-border terrorism.”
