Prime Minister Narendra Modi will embark on a two-nation visit on Wednesday, beginning with an official tour to the United Kingdom at the invitation of UK Prime Minister Keir Starmer from July 23-24. This will mark his fourth visit to the UK, underscoring the deepening ties between the two nations, especially in the realm of economic cooperation.
India and the UK share a strong and steadily growing economic partnership, reflected in robust trade figures and expanding investment flows. Bilateral trade between the two countries stood at approximately $53.75 billion in 2024, with Indian exports valued at around $32.5 billion and imports at about $21.25 billion. Trade in goods contributed $22.5 billion, while the services sector accounted for nearly $31.25 billion.
Investment flows between the two countries continue to deepen. The UK ranks as the sixth-largest inward investor in India, with a cumulative equity investment of $35 billion as of September 2024. On the other hand, Indian investments in the UK amounted to $19 billion till March 2024. There are currently 971 Indian companies operating in the UK, employing over 1 lakh people. Meanwhile, 667 British companies are active in India, providing employment to more than 5 lakh people.
A key development in bilateral economic relations has been the successful conclusion of the India-UK Free Trade Agreement (FTA) and the Double Contribution Convention. These landmark announcements were made during a telephonic conversation between the two Prime Ministers on May 6, 2025, following three years of negotiations. The FTA, one of India’s most comprehensive, spans 26 chapters, covering sectors such as goods, services, rules of origin, intellectual property rights, government procurement, digital trade, telecom, financial services, environment, and labour.
Two institutional mechanisms have played a pivotal role in driving the India-UK economic agenda. The India-UK Joint Economic and Trade Committee (JETCO), launched on January 13, 2005, is designed to strengthen strategic economic ties through a business-driven approach. The 15th JETCO meeting took place in New Delhi on January 13, 2022, co-chaired by India’s Commerce and Industry Minister Shri Piyush Goyal and UK’s then Secretary of State for International Trade, Ms. Anne-Marie Trevelyan. It was during this meeting that both nations formally launched negotiations for the FTA.
The India-UK Economic and Financial Dialogue (EFD), established on February 4, 2005, has been instrumental in shaping macroeconomic cooperation. The 13th EFD meeting was held in London on April 9, 2025, led by the Finance Ministers of both countries. Discussions focused on boosting infrastructure collaboration, enhancing fintech partnerships, promoting sustainable finance, and advancing knowledge exchange.