New Delhi: 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.