PM Modi Says Indian Migrants Will Strengthen the UK Economy

(Based on joint FTA signing, July 24, 2025)

In a landmark moment for UK–India relations, Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer signed a major Free Trade Agreement (FTA) on July 24, 2025, during Modi’s official two-day UK visit.

🍀 What the Leaders Said

• Modi described the cooperation as a “plan for shared prosperity,” and highlighted the role of the Indian diaspora in the UK as a “living bridge” between the two nations. He praised their contribution—spanning culture, public service, sports, and the UK economy.

• Modi emphasized that the UK would benefit from India’s skilled talent, especially as the deal injects fresh energy into technology and finance sectors

• Key highlights of the Agreement

• Major tariff reductions:

  • 99% of Indian exports to the UK will now be duty-free, covering textiles, food, jewelry, leather goods, and more.

  • UK goods (like whisky, cars, and aerospace parts) will see phased tariff cuts. Whisky tariffs, specifically, drop from 150% to 75%, aiming for 40% over ten years .

  • UK exports to India are expected to grow by 60% by 2040, and the deal could add £4.8 billion annually to the UK economy.

• Commitment to services mobility:

  • Indian professionals in fields like IT, finance, healthcare, architecture, yoga instruction, and music will see simplified visa procedures, including easier business travel pathways without immigration status changes .

  • The pact includes a Double Contribution Convention (DCC): Indian workers temporarily posted to the UK (and vice versa) won’t pay social security twice for up to three years, boosting take‑home income for around 75,000 workers and lowering costs for employ.

• Strategic Vision Beyond Trade:

  • Together, the two nations launched a “Vision 2035” roadmap, covering cooperation in education, defence, technology, climate, and digital innovation.

  • A Technology Security Initiative was unveiled to collaborate on AI, semiconductors, critical minerals, and cybersecurity.

  • Six UK universities (like University of Southampton) are opening campuses in India, further deeping academic.

Why This Matters

• For Britain: The country stands to gain from long-term economic growth, job creation, and access to highly skilled Indian talent—especially in tech, finance, and creative industries. Lower costs in service delivery and diversified markets also support UK businesses.

• For India: Its technology and services sectors gain broader access to UK markets, allowing India to export more and improve global visibility.

• For Indian Migrants: Easier mobility, reduced financial burden due to social security relief, better recognition of qualifications, and expanded career prospects in the UK .

In Modi’s Words

Modi used a cricket metaphor to describe UK–India relations: “There may be a swing and a miss at times, but we always play with a straight bat.” He reaffirmed that this agreement signals cooperation built on fairness, transparency, and ambition .

✅ Bottom Line

Prime Minister Modi affirmed that Indian migrants—especially those with professional skills—are a benefit to Britain. The newly signed trade and social security agreements support mobility, investment, and job creation, paving the way for shared prosperity and stronger bilateral ties.

Source: LIIE IMMIGRATION