India and the United Kingdom are set to sign a landmark free trade agreement — the UK's most significant trade deal since Brexit. After nearly two years of negotiations, Indian Prime Minister Narendra Modi and British Prime Minister Keir Starmer are expected to meet in London to finalise the deal.

London

Indian Prime Minister Narendra Modi is on his first official visit to the UK in seven years to finalise a free trade agreement with British Prime Minister Keir Starmer. The deal, which has been negotiated over three years and under four British Prime Ministers, is poised to expand bilateral trade currently valued at $57 billion annually. It is the UK's most substantial trade deal since leaving the European Union and marks India's first major trade agreement outside Asia.

The agreement is expected to include tariff reductions on goods such as cars, cosmetics, clothing, and food, along with concessions on work visas for Indian citizens. While economists note the immediate economic impact for the UK will be modest, the deal is seen as a significant step in the UK's global trade strategy. Discussions are also expected to cover technology, defence, and security cooperation, with both sides navigating complex international relations, including differing positions on Russia.

India and UK to sign landmark trade deal

On his first official visit to the UK in seven years, Indian Prime Minister Narendra Modi is expected to finalise a free trade deal with British Prime Minister Keir Starmer that will expand bilateral trade worth $57 billion a year. The agreement, negotiated over three years under four British Prime Ministers, is the UK's biggest since Brexit and India's first outside Asia. It's expected to include tariff reductions on goods like cars, cosmetics, clothing and food, while India is understood to have won concessions on work visas for its citizens coming to Britain. But economists say that despite the size of India's economy that overtook Britain's to become the world's fifth largest in 2021, the deal will only add about 0.1% to UK economic output. The short-term economic impacts of this deal are relatively small and certainly they don't compare to the losses that we've experienced as a result of Brexit by several orders of magnitude. Nevertheless, in terms of the UK government's medium to long-term global economic strategy, this is a pretty major achievement. And alongside the EU-UK reset and of course the damage limitation trade deal with Trump, it does reflect quite well on the UK government's overall trade strategy. The talks will likely broaden out beyond trade. Technology, sharing, defence and security are also on the table. Tricky areas to cover, mind you, while navigating mutual relations with a country like Russia, say. India has been reluctant to join Western sanctions against Moscow over the war in Ukraine. But it's the landmark trade deal that will likely make headlines, a win for both sides As in the era of Trump-led tariff battles, India gets to show off as an alternative investment destination to its competitor China, while Britain can demonstrate that it has other economic options after Brexit. Jonah Hull, Al Jazeera, London.

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