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September 4, 2026
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Customs & Trade

Ramping up trade, security ties focus of PM Modi's trip to UK, Maldives

July 22, 2025

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New Delhi, Jul 22 (PTI) Shoring up trade and defence cooperation will be the focus of Prime Minister Narendra Modi's visits to Britain and the Maldives beginning Wednesday with the formalisation of the landmark India-UK free trade deal set to be the key outcome of his trip to London.

The prime minister will first travel to the UK on a two-day trip and then visit the Maldives primarily to grace the island nation's Independence Day celebrations as "guest of honour".

Besides holding wide-ranging talks with British Prime Minister Keir Starmer, Modi will also meet King Charles III during his July 23-24 visit to the UK, according to Foreign Secretary Vikram Misri.

Starmer is set to host Modi on Thursday at Chequers, the official country residence of the British prime minister that is located 50 kms northwest of London.

Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynolds are likely to sign the free trade agreement (FTA) in presence of the two prime ministers, people familiar with the matter said.

In May, India and the UK sealed the FTA that is expected to benefit 99 per cent Indian exports from tariff and will make it easier for British firms to export whisky, cars and other products to India besides boosting the overall trade basket.

The trade deal, firmed up after three years of negotiations, is expected to ensure comprehensive market access for Indian goods across all sectors and India will gain from tariff elimination on about 99 per cent of tariff lines (product categories) covering almost 100 per cent of the trade values, according to officials.

Along with the FTA -- the biggest the UK has done since leaving the European Union -- the two sides also sealed a double contribution convention. It provides for exemption for employers of Indian workers from paying social security contributions in the UK.

"This visit, though a short one, will give both leaders the opportunity to review the entire gamut of the bilateral relationship and discuss ways to strengthen it further, and also discuss issues that are of regional and global relevance," Misri said at a media briefing.

Asked whether the FTA will be formally signed during PM Modi's visit to the UK, Misri said "last-minute" work on it is continuing.

"We are continuing to work on those and last-minute work on that is continuing," he said.

The British side perceives the FTA as part of a wider political reset of ties. The UK also expects the trade deal to lead to a wider relationship of trust between the two sides and to drive collaboration in key areas such as defence, especially with India set to spend a significant amount on its armed forces in the coming years.

The India-UK bilateral trade crossed USD 55 billion in 2023-24. The UK is the sixth largest investor in India, with a cumulative investment of USD 36 billion.

India's investments in the UK are close to USD 20 billion, and some 1,000 Indian companies operating in Britain provide employment to almost 100,000 people.

The British side is understood to have put in place extensive security arrangements to avert any attempt by pro-Khalistan elements to disrupt the PM Modi's visit or organise protests, including the sensitisation of security agencies to Indian concerns.

The foreign secretary said defence, technology, research, innovation and education have emerged as key pillars of India-UK cooperation.

"In the defence sector, we are seeing regular interactions and exercises amongst all three branches of the armed forces. We have placed military instructors at each other's military academies," he said.

"And one of the more significant partnership projects that we have embarked on in recent times is the agreement to look at electric propulsion capability between the two countries," he said.

On education ties between the two countries, Misri referred to the University of Southampton opening a campus in Gurugram recently, becoming the first foreign varsity to set up a campus under India's new education policy. Several other British institutions are considering establishing campuses in the country, he said.

The foreign secretary also mentioned the Technology Security Initiative (TSI) between the two sides that is focused on cooperation in areas of telecom, critical minerals, artificial intelligence, biotechnology, semiconductors, advanced materials, and quantum computing.

"One of the most important, probably the foundational aspects of this relationship is the living bridge that connects India and the UK, people of Indian origin in the UK, nearly 1.8 million strong Indian diaspora, which has contributed to strengthening bonds of friendship between our two countries, but has also made extremely valuable contributions to UK economy and society," he said.

During his July 25-26 trip to the Maldives, Modi will hold extensive talks with President Mohamed Muizzu and is set to inaugurate a number of India-assisted development projects in the island nation.

The prime minister will also be the guest of honour at the Maldivian Independence Day celebrations on July 26.

"The prime minister's state visit also happens to be the first state visit of a head of government that President Muizzu is hosting in his presidency since he assumed the office in November 2023," Misri said.

"The Maldives is a very close partner in our neighbourhood, a very important partner in India's Neighbourhood First policy, and as part of the MAHASAGAR vision of India, which is Mutual and Holistic Advancement for Security and Growth Across Regions," he added.

Misri also mentioned the India-Maldives joint vision for a 'Comprehensive Economic and Maritime Security Partnership' that was finalised last year.

"This joint vision, in a sense, has become the guiding framework for our ties," he said.

The prime minister's visit to the Maldives is seen as important as it marks a significant reset of bilateral ties that had come under severe strain after Muizzu, known for his pro-China leanings, became president in November 2023.

Misri attributed the turnaround in the relationship to India working hard on the ties with the island nation.

"It's a question of working hard at a relationship. There will always be events that will impact or try to intrude on the relationship. But I think this is testimony to the kind of attention that has been paid to the relationship and including attention at the highest levels that has been paid to the relationship," he said.

"We've continued to work at it, and I think the result is there for you to see. I think we have also been in very close discussions with our partners in the Maldives to provide clarity and assurances about what it is that we want to do bilaterally, and I think the result is there for all to see," he added. PTI MPB KVK KVK

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