India, UK likely to sign FTA today; business heavyweights converge

Prime Minister Narendra Modi and his British counterpart, Keir Starmer, are set to meet on Thursday for the formal signing of the long-negotiated India–UK free-trade agreement, marking a significant moment in bilateral ties.

The signing is scheduled to take place at Chequers, the British prime minister’s countryside retreat in the Chiltern Hills of Buckinghamshire. The 16th-century manor, located roughly two hours from London, will provide the backdrop for the ceremonial close of years of talks between the two nations.

“I am embarking on a visit to the UK and the Maldives from July 23 to 26. India and the UK share a Comprehensive Strategic Partnership that has witnessed significant progress in recent years. Our collaboration spans a wide range of sectors, including trade, investment, technology, innovation, defence, education, research, sustainability, health and people-to-people ties,” Modi said in an official statement ahead of his departure.

Commerce and Industry Minister Piyush Goyal, along with senior officials from the commerce department — including Special Secretary and Chief Negotiator L Satya Srinivas, Industry Secretary Amardeep Singh Bhatia — and a high-powered business delegation, are already in London for the occasion.

The 16-member Indian business contingent includes Bharti Enterprises Chairman Sunil Bharti Mittal; Essar Group Chief Executive Prashant Ruia; Mahindra & Mahindra Group CEO and MD Anish Shah; OYO Founder and Group CEO Ritesh Agarwal; and Director General of the Confederation of Indian Industry Chandrajit Banerjee. They will be joined by top British executives for discussions on deepening commercial ties.

While Goyal and UK Business and Trade Secretary Jonathan Reynolds are expected to ink the agreement on Thursday, a business-to-business summit is set for the following day. Delegates from both countries will explore how to leverage the trade pact’s provisions and expand opportunities under the new framework.

The timing of the signing is seen as strategically significant. India is also in the advanced stages of concluding a trade deal with the United States, at a time of rising geopolitical polarisation.

The Union Cabinet approved the FTA on Tuesday. While implementation in India is now a formality, the UK must still seek approval from Parliament. Once enacted, the agreement is expected to bring substantial benefits. India will see British tariffs eliminated on around 99 per cent of tariff lines, essentially encompassing the full trade value between the countries. Indian tariffs, in turn, will be reduced or eliminated on 90 per cent of tariff lines, with 85 per cent becoming fully duty-free within a decade.

The deal is expected to boost Indian exports to the UK, making them more competitive through tariff reductions and improved market access. S C Ralhan, president of the Federation of Indian Export Organisations (FIEO), said the agreement could have a positive impact on job creation, particularly in labour-intensive sectors such as textiles, leather and jewellery. It could also lead to a rise in bilateral investment flows.

Kirit Bhansali, chairman of the Gems and Jewellery Export Promotion Council (GJEPC) and a member of the Indian delegation, projected that exports of gems and jewellery to the UK could nearly treble to $7 billion in the next financial year. “We are expecting exports of studded jewellery to pick up,” Bhansali said.

India is expected to import gold, silver, and platinum from the UK in return, though these will be subject to a certain cap.

Bilateral trade between India and the UK stood at over $55 billion in FY24. The UK is currently the sixth largest investor in India, with cumulative investments of $36 billion, while India has invested nearly $20 billion in the UK, according to data from the Ministry of External Affairs.