The trade deal between PM Modi, India and Britain, going to UK on a 2 -day tour

India-UK Free Trade Agreement: Prime Minister Narendra Modi Will visit Britain on a tour of two days (23-24 July 2025). During this time, the trade agreement between India and Britain will be finalized in May. It is expected that the deal will be formally signed during this period.

PM Modi will go on a four -day tour of Britain and Maldives from Wednesday. In the first phase, he will go to Britain on July 23-24 and in the second phase will be on a tour of Maldives on 25-26 July. He will attend the Independence Day celebrations in Maldives as ‘Chief Guest’.

Negotiations on the deal started in 2022

This trade agreement between India and Britain is considered very important. India is the fifth largest economy in the world and Britain is the sixth largest economy in the world. In January 2022, the first conversation on this agreement began. In three years, 14 rounds of talks have been completed so far. This agreement will boost the trade of both countries. This will promote India’s export, leather and engineering goods exports. Also, UK products like whiskey, automobile and medical devices will also benefit.

What will be the benefit of India?

In FY 2024, UK worth $ 12.9 billion (about 1.12 lakh crore rupees) was exported from India. These included products such as leather, footwear, james and jewelery, textiles and clogging, furniture, sports goods, chemical, transport/auto components. In Britain, these products of India are charged with a duty fee of up to 4-16 percent. In such a situation, if the tariff is less then India will benefit more.

Both countries benefit from the deal

Scotch whiskey from Britain and Jin’s import duty will be initially reduced to 75 percent and 40 percent by 10th year. At the moment, it is 150 percent. Under the quota of both sides, the tariff on the automobile of Britain will be reduced from 100 percent to 10 percent, which will benefit companies like Tata-JLR.

Whiskey is ordered from Britain to India worth more than 20 million pounds (Rs 2,310 crore) every year. Tariffs on internal combustion engine (ice) vehicles will be gradually reduced in the long term. Tariff on luxury cars will also be reduced from 100 percent to 10 percent under the quota of both sides. UK companies will get special discounts under the ‘Make in India’ policy. Every year business will grow between the two countries.

Export of both countries will increase

This deal is expected to increase around 60 percent (15.7 billion pounds – 1.81 lakh crore rupees) in Britain’s exports to India. With this, India’s exports to Britain are also expected to increase 25 percent (9.8 billion pounds – 1.13 lakh crore rupees). India is the 12th largest trading partner in Britain, while Britain is the 14th largest trading partner in India.

Total is a turnover of Rs 195,937 crore (Rs 1.95 lakh crore) between India and Britain. India’s exports to Britain are Rs 123,055 crore (Rs 1.23 lakh crore), while goods worth Rs 72,882 crore are exported from Britain.

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