Description: Indian Prime Minister, Narendra Modi, is on an official visit to the UK where he would meet UK’s Prime Minister, Keir Starmer, and conclude the groundbreaking trade agreement between the two nations. The leaders are also expected to discuss other high priority subjects concerning their respective countries such as defense ties, technological cooperation and security issues. The agreement envisaged contractual provisions such as significant tariff reductions by both sides which would come into effect after the parliaments in both countries rarify the deal in mid-2026. India would reduce tariffs on UK imports on 90% of the products entering the country while the UK is expected to exclude 99% of the Indian products entering the country’s market from any tariff obligations. Financial and legal services have been excluded from the agreement as both countries cited protection of national interests concerns. India managed to negotiate a favorable deal, surpassing key UK regulations such as the carbon emissions tax and to keep key national revenue industries such as agriculture outside the agreement.
Impact: The bilateral trade agreement between the UK and India mostly benefits the Asian country in return for allowing the UK access to India’s growing manufacturing and government procurement markets, enabling the European country’s entry into key industries such as infrastructure, transport and energy. The trade deal also strengthens bilateral political ties and empowers both leaders in their respective domestic standing, with Starmer facing pressure on resolving key issues such as migration, economic stagnation and decline and the rise of the far – right populism. Modi also elevates his domestic political profile by ensuring key trading partners through mostly favorable conditions for India’s expanding economy. The deal also formulates a basis for future expansion of the partnership towards establishing a potential strategic alliance.