PM Modi to visit Britain, Maldives this week; to witness inking of India-UK trade deal in London

New Delhi, Jul 20: Prime Minister Narendra Modi will pay a four-day visit to the United Kingdom and the Maldives from Wednesday to shore up overall bilateral ties and formalise the landmark India-UK free trade deal that is set to pave the way for doubling two-way trade by 2030 from current USD 60 billion.

Modi will first travel to the UK on a two-day trip and then will visit the Maldives primarily to grace the island nation’s Independence Day celebrations as “guest of honour”, according to the Ministry of External Affairs (MEA).

The prime minister’s visit to the Maldives from July 25 to 26 is seen as important as it marks a significant reset of bilateral ties that had come under severe strain after Mohamed Muizzu, known for his pro-China leanings, became president in November 2023.

In the first leg of his trip, Modi will visit the UK from July 23 to 24 to hold wide-ranging talks with British Prime Minister Keir Starmer, the MEA said on Sunday.

India and the UK are expected to formally sign the free trade deal during PM Modi’s visit to London, people familiar with the matter said, adding the British side has completed the administrative process for inking of the pact.

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

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.

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.

A British readout had said Indian tariffs will be slashed, locking in reductions on 90 per cent of tariff lines, with 85 per cent of these becoming fully tariff-free within a decade.

The FTA is set to double bilateral trade by 2030 from the current level of USD 60 billion, the officials said.

PM Modi will hold wide ranging discussions with PM Starmer on the entire gamut of India-UK bilateral relations besides exchanging views on issues of regional and global importance, the MEA said, announcing the two-nation trip.

It will be PM Modi’s fourth visit to the UK.

The MEA said he is also expected to call on King Charles III.

“During the visit, the two sides will also review the progress of the Comprehensive Strategic Partnership (CSP) with a specific focus on trade and economy, technology and innovation, defence and security, climate, health, education and people-to-people ties,” the MEA said in a statement.

From London, Modi will travel to the Maldives primarily to grace the island nation’s 60th anniversary of its Independence on July 26.

It will be Modi’s third visit to the Maldives, and the first visit by an Indian head of state or government since Muizzu assumed office in November 2023.

PM Modi and President Muizzu will hold discussions on issues of mutual interest and take stock of the progress in the implementation of the India-Maldives joint vision for a ‘Comprehensive Economic and Maritime Security Partnership’.

The joint vision was adopted during Muizzu’s visit to India in October last year.

“The visit reflects the importance India attaches to its maritime neighbour, Maldives, which continues to hold a special place in India’s ‘Neighbourhood First’ policy and Vision MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions),” the MEA said.

It said the visit will provide an opportunity for both sides to further deepen and strengthen the close bilateral relationship. (Agencies)