PM Modi Visits UK and Maldives; India, UK Sign Historic Free Trade Agreement

This week, the Indian PM travelled to the United Kingdom (UK) and Maldives to initiate a new era of collaboration with both nations.

- Anshu Joshi

The PM's trip to the Maldives holds significant strategic importance, in light of the fact that President Muizzu won the elections based on his anti-India rhetoric and has requested the withdrawal of Indian troops from the Maldives earlier, indicating a challenging situation for India concerning regional and maritime security. However, the situation has changed and the grand reception Indian PM received on his arrival in the Maldives speaks volumes.

On the other hand, the visit to the UK has resulted in India securing a long-awaited Free Trade Agreement (FTA), creating a mutually beneficial scenario for the economies of both countries. This FTA has been under negotiation since 2022, and on 6 May 2025, India and the UK successfully concluded this significant agreement. The Government of India has characterized this as a historic and ambitious deal aimed at enhancing employment, exports, and national growth for both the nations.

The FTA encompasses the elimination of tariffs on 99% of Indian tariff lines, which accounts for nearly 100% of the trade value, and it also reduces tariffs on 90% of UK tariff lines, projecting an estimated annual economic increase of 6.4 billion USD for the UK by the year 2040. Additionally, it is expected to foster investments, encourage innovative practices, and facilitate the mobility of services.