London, Jul 23 (PTI) Prime Minister Narendra Modi on Wednesday kick-started his two-day visit to the UK to expand the bilateral ties in areas of defence, trade and technology with the formalisation of the landmark India-UK free trade deal set to be a major outcome of his trip.

Modi will hold wide-ranging talks with his British counterpart Keir Starmer on Thursday that is expected to focus on imparting a new momentum in the strategic ties between the two countries.

Starmer is set to host Modi for the talks at Chequers, the official country residence of the British prime minister that is located 50 km northwest of London.

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

In May, India and the UK sealed the free trade agreement 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.

In his departure statement, Modi said India and 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," he said.

The prime minister said he and Starmer will have the opportunity to further enhance the bilateral economic partnership.

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.

Modi will also meet King Charles III during the visit.

From London, Modi will travel to the Maldives at the invitation of President Mohamed Muizzu in what is being seen as a breakthrough in the ties between the two countries following a spell of frostiness under Muizzu. PTI MPB SCY SCY

Free trade agreement expands market access, eliminating tariffs on nearly all product lines and adding social security exemption provisions. A bilateral Free Trade Agreement establishes comprehensive market access by eliminating tariffs on the vast majority of tariff lines and easing export conditions, while an accompanying Double Contribution Convention exempts employers of Indian workers from paying overlapping social security contributions in the United Kingdom, coordinating social security obligations to avoid dual liabilities and support cross-border labour-related commerce.