https://arab.news/vzeg9
- Deal-in-principle was announced by Modi and Starmer in May
- India is also in talks with EU to conclude FTA by the end of 2025
New Delhi: Prime Minister Narendra Modi will visit the UK this week, the Indian government said on Sunday, as the countries prepare to formally sign a long-pending bilateral free trade agreement.
Modi’s two-day trip on the invitation of his British counterpart, Keir Starmer, will start on Wednesday.
“During the visit, the two sides will also review the progress of the Comprehensive Strategic Partnership (CSP) with a specific focus on trade and economy, technology and innovation, defence and security, climate, health, education and people-to-people ties,” the Indian Ministry of External Affairs said on Sunday.
Launched in January 2022, the FTA negotiations between India and the UK were set to conclude the same year, but despite more than a dozen formal rounds, talks have stalled over issues like tariffs, rules of origin and mobility for services professionals.
A deal-in-principle was announced by Modi and Starmer in May, and India’s Commerce Minister Piyush Goyal was in London last month, with his office saying the visit aimed at charting out a “clear, time-bound road map for its finalization and implementation.”
At the same time, India is in ongoing talks with the US, which is seeking broader access to several key sectors, including agriculture, automobiles, steel, and aluminum — a concession New Delhi resists. Without a deal, Indian exports could face a 26–27 percent “reciprocal” tariff imposed by President Donald Trump’s administration starting Aug. 1.
The FTA with the UK could offer India more predictability in economic matters, according to Prof. Harsh V. Pant, vice president of the Observer Research Foundation.
“This is going to be an important marker in the India-UK relationship, and India signaling to the world, particularly in the age of Trump — where there is so much unpredictability and volatility — that any kind of predictability that comes in with other partners is a benefit for every side,” he told Arab News.
“In this case, the UK and India would be hoping that this gives them greater predictability in their economic partnership, thereby reducing some of the challenges that continue to emanate from Washington.”
The pact would also signal to other partners that India is willing to engage on economic matters.
India is also in talks with the EU to conclude a comprehensive FTA by the end of 2025.
“This is a very important signal to other interlocutors, including the EU and US, that India will be willing to engage creatively on concluding these FTAs,” Pant said.
“This FTA is also crucial for a post-Brexit UK that is trying to retain its economic relevance around the world.”