India-UK Deepen Strategic Ties with Free Trade Agreement and Anti-Terror Focus


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India-UK Deepen Strategic Ties with Free Trade Agreement and Anti-Terror Focus
Prime Minister Narendra Modi met UK Foreign Secretary David Lammy in New Delhi on Saturday to discuss strategic ties, trade, and counter-terrorism cooperation.
India and the UK reaffirm their partnership with a new trade deal, defence and tech collaboration, and strong anti-terrorism commitments during UK Foreign Secretary David Lammy’s visit to Delhi.
UK Foreign Secretary David Lammy met Indian Prime Minister Narendra Modi and External Affairs Minister Subrahmanyam Jaishankar in New Delhi on Saturday, marking a significant step in the strengthening of India-UK relations. The visit underscored both countries’ focus on economic partnership, technological collaboration, and joint efforts to combat terrorism.

Speaking after the meeting, Indian Prime Minister Narendra Modi welcomed the progress in bilateral relations and commended Lammy’s contribution to the India-UK Comprehensive Strategic Partnership. “We value the UK’s support for India’s fight against cross-border terrorism,” he stated, also highlighting the significance of the recently concluded Free Trade Agreement (FTA).

The discussions took place shortly after military tensions between India and Pakistan last month, making Lammy the first foreign minister from a permanent member of the UN Security Council (P-5) to visit India following the hostilities.

In his statement, External Affairs Minister Jaishankar reiterated India’s stance of “zero tolerance against terrorism” and cautioned against equating victims with perpetrators. He thanked the UK for condemning the recent terrorist attack in Pahalgam, in the Union Territory of Jammu and Kashmir, and for supporting India’s counter-terrorism efforts.

“The Government of the United Kingdom has strongly condemned the barbaric terrorist attack and expressed solidarity. We will never accept the equivalence of victims and those who commit these acts of evil,” Jaishankar said.

Trade and Economic Ties Strengthened
The finalisation of the India-UK Free Trade Agreement and the Double Taxation Avoidance Convention was hailed as a major milestone in bilateral economic ties. According to the British Foreign Office, the FTA is expected to increase bilateral trade by over £25 billion annually, raise the UK’s GDP by £4.8 billion, and add £2.2 billion in wages each year.

Jaishankar highlighted the broader implications of the agreement, saying it would positively impact supply chains and strategic cooperation.

Lammy described the trade deal as “a trophy” and called it the start of a new era in UK-India relations. He added, “Signing a free trade agreement is just the beginning. We’re building a modern partnership that will shape future technologies, tackle the climate crisis, and improve security for our citizens.”

During the 2023–24 financial year, India became the UK’s second-largest source of investment in terms of project numbers for the fifth consecutive year. Trade between the two nations amounted to nearly $57 billion in 2024.

Technology and Strategic Cooperation
Both sides also reviewed progress under the Technology Security Initiative (TSI), first launched during Lammy’s visit in 2024. The initiative is designed to facilitate cooperation in emerging and critical technologies, including artificial intelligence, semiconductors, telecommunications, health technologies, quantum computing, and advanced materials.

A new mechanism, the Strategic Exports and Technology Cooperation Dialogue, was launched this week to support the TSI’s objectives by resolving licensing and regulatory issues in high-tech trade.

Jaishankar said the TSI would “enable deeper collaboration in strategic technology sectors” and praised ongoing cooperation between the countries’ national security advisers.

Infrastructure and Education Links Grow
Lammy and Jaishankar also discussed the UK-India Infrastructure Financing Bridge, which aims to facilitate long-term capital flows from the UK into Indian infrastructure projects. This, Jaishankar noted, would help accelerate India’s development goals.

The two countries are also expanding their partnership in higher education. Several British universities are exploring the establishment of campuses in India, enhancing academic exchanges and people-to-people ties.

Two new Indian consulates have recently opened in the UK, in Manchester and Belfast, underscoring the growing diplomatic engagement.

Migration and Security
Migration and border security were also on Lammy’s agenda. The UK Foreign Office said the discussions included ongoing work to “safeguard citizens and secure borders in both countries” under the bilateral migration partnership.

Lammy emphasised the importance of managing migration “comprehensively and responsibly” and stated that addressing illegal immigration remains a high priority for the UK government.

Cultural and Soft Power Engagement
In a move to deepen cultural ties, India and the UK signed a new Programme of Cultural Cooperation on 2 May. The agreement aims to boost collaboration in creative industries, tourism, and sports, while also enabling more partnerships between cultural institutions in both countries.

The agreement is expected to open up more opportunities for UK creative exports to India and strengthen Britain’s cultural influence, or “soft power”, in the region.

Context Section:
The renewed momentum in India-UK relations comes amid global efforts to reconfigure supply chains, develop trusted technological ecosystems, and form strategic alliances in an increasingly multipolar world.

The free trade agreement, if implemented as planned, could drastically reshape bilateral commerce. For example, Indian tariffs on automotive imports and alcoholic beverages will be significantly reduced over the next decade. In return, nearly 99% of Indian exports to the UK will benefit from duty-free access.

This economic integration also reflects the UK’s post-Brexit foreign trade strategy of forging closer ties with fast-growing economies like India.

British Prime Minister Keir Starmer is expected to visit India soon for the formal signing of the trade agreement. Legal finalisation of the deal is underway and is anticipated to conclude within three months.

As geopolitical and economic dynamics continue to shift, both India and the UK appear poised to strengthen their partnership across sectors critical to future global growth and security.
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