PM Modi’s U.K. Visit | Gist of Rajya Sabha TV / RSTV (now Sansad TV) - UPSC PDF Download

Introduction

Prime Minister Narendra Modi’s visit to the United Kingdom on July 23–24, 2025, marks a pivotal moment in India-UK relations, culminating in the signing of the India-UK Free Trade Agreement (FTA). Discussed on Senset TV’s Perspective with experts Jitendra Tripati (former ambassador) and Professor Gulchan Sachdeva, the visit underscores a transformative phase in bilateral ties, driven by trade, defense, technology, and climate action. The FTA, a post-Brexit milestone, aims to double bilateral trade by 2030, while deepening strategic cooperation in the Indo-Pacific and beyond.

Key Objectives

• FTA Signing: Formalize the India-UK Free Trade Agreement to boost trade and investment.
• Strategic Partnership: Enhance cooperation in defense, technology, climate action, and global security.
• Regional Influence: Foster joint ventures in the Commonwealth and Indo-Pacific regions.

Key Highlights

• Historic Visit: Modi’s fourth UK visit strengthens the Comprehensive Strategic Partnership.
• FTA Impact: Eliminates tariffs on 99% of Indian exports, doubles trade to $120 billion by 2030.
• Sectoral Benefits: Boosts Indian textiles, IT services, and UK whisky, car exports.
• Safeguards in Place: Tariff-rate quotas protect India’s automobile industry.
• Strategic Alignment: Deepens trust in counter-terrorism, defense, and technology transfer.
• Climate and Innovation: Focus on joint climate resilience and critical tech like AI.
• Global Reach: Expands cooperation in Commonwealth and Indo-Pacific initiatives.

Key Insights

1. Historical Evolution of Ties
   India-UK relations, dormant post-independence due to Cold War dynamics, have grown since the 2004 strategic partnership, with milestones like civil nuclear cooperation (2010) and the Comprehensive Strategic Partnership (2021). Brexit accelerated engagement, positioning the FTA as a post-Brexit win for both nations.

2. Brexit as a Catalyst
   Post-Brexit, the UK seeks new global partnerships, while India leverages this to deepen ties. The FTA reflects strategic alignment amid global trade tensions, enhancing economic and geopolitical cooperation.

3. Economic Transformation
   The FTA eliminates tariffs on 99% of Indian exports (textiles, gems, sports goods) and reduces UK tariffs on whisky (from 150% to 40% over a decade) and cars (from 100% to 10%). It doubles bilateral trade from $56.7 billion (2024) to $120 billion by 2030, boosting IT and services trade.

4. Safeguarding Domestic Industries
   Tariff cuts on automobiles raise concerns for India’s ‘Make in India’ initiative, but tariff-rate quotas and phased reductions ensure protection for sensitive sectors, balancing liberalization with domestic interests.

5. Strategic Trust Beyond Trade
   The FTA fosters trust in counter-terrorism, defense modernization, and technology transfer, with discussions on Khalistani extremism and joint military exercises signaling deeper security ties.

6. Climate and Technology Focus
   Cooperation in climate resilience, green energy, and critical technologies like AI and semiconductors aligns with global challenges, supported by the Technology Security Initiative (2024).

7. Global and Regional Ambitions
   The partnership extends to joint ventures in the Commonwealth and Indo-Pacific, enhancing India’s regional leadership and UK’s post-Brexit global role through collaborative projects in Africa and beyond.

Challenges and Opportunities

• Challenges: Protecting sensitive sectors like automobiles, addressing the UK’s Carbon Border Adjustment Mechanism (CBAM), and finalizing a bilateral investment treaty.
• Opportunities: Doubling trade, enhancing defense and tech collaboration, and leveraging the Indian diaspora (2.7% of UK population) for cultural and economic ties.

Conclusion

Prime Minister Modi’s visit and the India-UK FTA signing on July 24, 2025, mark a transformative milestone in bilateral relations. By eliminating trade barriers, fostering strategic trust, and prioritizing defense, technology, and climate action, the agreement strengthens India’s global economic and geopolitical standing. As a foundation for the Comprehensive Strategic Partnership, it paves the way for collaborative growth in the Indo-Pacific and beyond, aligning with India’s vision for 2047 and the UK’s post-Brexit ambitions.