India, UK to sign free trade deal during Modi’s visit. On July 24, 2025, during Prime Minister Narendra Modi’s visit to London, India and the United Kingdom will formalize a free trade agreement aimed at boosting bilateral trade, which reached $55 billion in 2023/24. The deal, finalized after three years of negotiations, will see India reduce tariffs on British whisky from 150% to 75%, with a further drop to 40% over the next decade, and cut duties on cars from 100% to 10% under a quota system. In return, the UK will grant duty-free access to 99% of Indian exports, including textiles, footwear, and electric vehicles, benefiting manufacturers like Welspun India and Bata India.
The agreement, pending approval from the British Parliament and India’s cabinet, is expected to enhance economic ties, with the UK as India’s sixth-largest investor, contributing $36 billion. Indian companies, employing 100,000 people in the UK, have invested $20 billion. Social media discussions highlight optimism about job creation and cheaper goods, though some express concerns about India’s domestic manufacturing under pressure from reduced auto tariffs. Modi’s visit, his fourth to the UK since 2014, includes talks with Prime Minister Keir Starmer on trade, security, and energy, reinforcing the strategic partnership between the two nations.
Published in SouthAsianDesk, July 23rd, 2025
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