An important turning point in India-UK ties was reached when Prime Minister Narendra Modi met with UK Prime Minister Keir Starmer on the fringes of the 51st G7 Summit in Kananaskis, Canada. PM Modi called their discussion “exceptional,” as both leaders reaffirmed the strengthening of bilateral ties, especially in trade and business.
The statement “We will keep working together to add even more momentum to this wonderful friendship” was posted on social media by Modi, who emphasized the advancements made in these areas and pledged to further strengthen the alliance.
The recent Air India tragedy in Ahmedabad, which took British lives, provided a gloomy backdrop for the gathering. Both leaders expressed their regret for the tragedy and committed to working closely together while the probe is ongoing.
The India-UK Free Trade Agreement (FTA), which was signed in May 2025, is a significant focal point of the two countries’ bilateral relationship. 99% of Indian exports to the UK are eligible for zero-duty access under this historic agreement, which is the UK’s most important bilateral trade agreement since Brexit. These exports include textiles, clothing, leather, footwear, marine products, sports goods, toys, gems and jewelry, auto parts, engineering goods, and organic chemicals. Tariffs on automobiles were notably reduced to 10% under a quota system, down from over 100% previously.
With allowances for roughly 100 more visas each year for Indian professionals, particularly in the IT and healthcare sectors, the FTA further encourages labor mobility. Additionally, professionals are exempt from paying social security obligations in both countries because to the Double Contribution Convention Agreement, which makes cross-border employment easier.
While India is the eleventh-largest trading partner of the UK, the UK is India’s fourth-largest export destination. By 2030, bilateral trade is expected to treble from its current level of about USD 60 billion. A crucial milestone in the face of uncertainty surrounding tariffs and global trade instability, the FTA is India’s sixteenth.
PM Modi took part in talks on urgent global issues during the G7 Summit, including as technology cooperation, energy security, and the Global South’s priorities. He emphasized India’s efforts like the International Solar Alliance and the Global Biofuels Alliance, reaffirmed India’s position on coordinated international action against terrorism, and urged developing countries to voice their concerns.
As part of a three-nation tour, PM Modi made his first trip to Canada in ten years. He met bilaterally with several leaders, including French President Emmanuel Macron, Italian Prime Minister Giorgia Meloni, Canadian Prime Minister Mark Carney, and others. Following a period of tense relations, the two nations agreed to reestablish full diplomatic ties and install new high commissioners, marking a thaw in India-Canada relations.
In the broader context of PM Modi’s active engagement with world leaders during a crucial international gathering, the Modi-Starmer meeting at the G7 Summit highlighted the strengthening India-UK partnership, the implementation of a historic free trade agreement, and a shared commitment to addressing both bilateral and global challenges.
