A brief exchange between Prime Minister Narendra Modi and his UK counterpart, Keir Starmer, on the sidelines of the G7 Summit 2026 has fuelled speculation that India and the United Kingdom may have finally resolved key hurdles delaying their long-awaited free trade agreement.

According to a report by Bloomberg, the two leaders were caught on a microphone during an interaction at the summit in France, where PM Modi was heard saying, “We did it.”

Responding immediately, Starmer reportedly said, “We did it. Yes, yes, yes, I hear. We got it over the line. So this is good.”

Although neither leaders have directly referred to the subject of the conversation, the exchange has triggered expectations that both countries may have reached a breakthrough on unresolved issues surrounding the India-UK free trade agreement.

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Trade deadlock may have been resolved

The India-UK trade pact which was signed last year after more than three years of negotiations, had faced delays in implementation over multiple unresolved concerns.

Initially, Indian officials had pointed to procedural delays within the British Parliament. More recently, disagreements emerged over Britain’s new steel safeguard measures, which significantly reduced tariff-free steel import quotas.

According to Bloomberg, India had warned that it could reconsider certain concessions offered under the agreement after the UK introduced fresh restrictions affecting steel imports.

The recorded conversation appeared to offer more clues about a possible resolution.

After the initial exchange between the two leaders, an Indian aide was reportedly heard asking, “How will we announce it today?”

Starmer reportedly responded, “I think we put a statement out.” He then added, “Or we could do something more,” before suggesting, “Should I ask our teams how we should do this?”

Leaders hold bilateral meeting at G7 summit

Following the exchange, PM Modi and Starmer held a bilateral meeting on the sidelines of the summit in Evian, France.

While official statements issued by both governments did not directly mention the steel dispute, the Indian government noted that “the leaders looked forward to the early entry into force of the comprehensive economic and trade agreement.”

The wording has further strengthened expectations that outstanding trade concerns may now be close to resolution.

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India’s biggest trade pact in a decade

The India-UK Free Trade Agreement is considered one of the most significant economic deals signed by New Delhi in recent years. It is India’s largest trade agreement in a decade and Britain’s biggest bilateral trade deal since leaving the European Union under Brexit.

Under the agreement, India has agreed to reduce tariffs on nearly 90% of tariff lines covering British exports, with nearly 85% of those products becoming completely tariff-free over the next decade.

In return, Britain will lower duties on nearly 99% of tariff lines for Indian exports, opening wider access for sectors including textiles, jewellery, engineering goods and agricultural products.

With both sides now signalling progress, attention is shifting to an official announcement that could mark a major milestone in strengthening economic ties between India and United Kingdom.