Prime Minister Narendra Modi has embarked on a four-day diplomatic tour to the United Kingdom and the Maldives, aimed at strengthening India’s global trade relations, defence cooperation, and regional partnerships.
India-UK Relations: A Historic Trade Deal in the Making
PM Modi’s UK visit, scheduled from July 23 to 24, comes at a pivotal moment as India and the United Kingdom prepare to formalize a long-awaited Free Trade Agreement (FTA). The visit follows an invitation by British Prime Minister Keir Starmer, and is expected to deepen bilateral relations significantly.
During his stay in London, Prime Minister Modi will engage in high-level meetings with PM Starmer and also meet King Charles III. On Thursday, July 24, Starmer will host Modi at Chequers, the official countryside residence of the British Prime Minister.
The India-UK FTA, years in the making, is poised to boost Indian exports and grant easier market access for British products such as whisky, automobiles, and industrial goods. The deal is anticipated to benefit 99% of Indian exports by eliminating tariffs, opening up nearly all product categories to smoother trade flow.
Commerce Minister Piyush Goyal and UK Secretary Jonathan Reynolds are expected to sign the FTA during the visit. This agreement will become the largest trade pact signed by the UK since Brexit.
Economic Impact of the India-UK Trade Pact
The bilateral trade between India and the UK reached $55 billion in FY 2023-24. The UK stands as India’s 6th largest investor, with cumulative investments totaling $36 billion. In return, India has invested nearly $20 billion in the UK, where 1,000 Indian companies generate employment for over 100,000 people.
The trade pact is not just about goods. It includes a double contribution convention, allowing Indian employers to avoid paying social security contributions for Indian staff working in the UK.
Strengthening Defence and Innovation Partnerships
According to Foreign Secretary Vikram Misri, defence and technology form the backbone of modern India-UK ties. Both nations have established strong military collaboration, with officers stationed in each other’s military academies and regular tri-service exercises.
In addition, the Technology Security Initiative (TSI), launched jointly, focuses on emerging technologies including AI, biotechnology, semiconductors, critical minerals, telecom, and quantum computing.
Extensive security measures have been implemented in London, particularly to deter pro-Khalistan protests during PM Modi’s visit.
Modi’s Maldives Visit: A Diplomatic Reset
Following the UK leg, Prime Minister Modi will travel to the Maldives on July 25-26, responding to an invitation from President Mohamed Muizzu. The highlight of this leg will be his role as the Guest of Honour at the 60th Independence Day celebrations of the island nation on July 26.
This visit holds major diplomatic significance, as PM Modi becomes the first head of government to be officially hosted by President Muizzu since he took office in November 2023.
India-Maldives: Rebuilding Trust and Strengthening Ties
India’s relationship with the Maldives experienced tensions following Muizzu’s election due to his perceived pro-China stance. However, recent developments show a strategic realignment. PM Modi’s visit marks a diplomatic reset, signaling India’s commitment to its “Neighbourhood First” and MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions) vision.
The two leaders will also review progress on the India-Maldives Comprehensive Economic and Maritime Security Partnership, a vision document finalized last year to guide bilateral cooperation in trade, security, and regional development.
PM Modi will also inaugurate India-assisted development projects, further cementing India’s role as a development partner in the Indian Ocean region.
Strategic Significance Amid Parliament Session
PM Modi’s trip comes during the ongoing Monsoon Session of Parliament, which started on July 21. Despite domestic legislative priorities, the Prime Minister’s decision to go ahead with the tour underlines the global and regional importance of these engagements.
“This short visit will allow both leaders to review the full spectrum of bilateral relations and explore avenues for deeper cooperation on regional and global challenges,” said Foreign Secretary Misri during a media briefing.
A Vision for India’s Global Future
Prime Minister Narendra Modi’s UK and Maldives visit underscores India’s evolving role in the global order. From economic integration and trade liberalization with the West to regional stability in the Indian Ocean, the visit could redefine India’s global footprint.
🔖 Key Highlights at a Glance:
- India-UK FTA set to eliminate tariffs on 99% of Indian exports.
- PM Modi to meet UK PM Keir Starmer and King Charles III.
- Signing of social security exemption deal for Indian workers.
- Enhanced defence and technology collaboration with the UK.
- First state visit hosted by Maldives President Mohamed Muizzu.
- PM Modi to be Guest of Honour at Maldives’ 60th Independence Day.
- Focus on MAHASAGAR vision and regional security.
By securing historic trade agreements, deepening defence partnerships, and extending development support, PM Modi aims to position India as a reliable, strategic partner across continents.