A hot microphone captured Modi telling Starmer, “We did it,” during a meeting attended by other G7 leaders, the report cited Bloomberg.
Starmer reportedly replied, “We did it. Yes, yes, yes. We got it over the line. So this is good,” it added.
The exchange appeared to suggest that both sides have made significant progress on issues that were still under discussion.
The development comes as India and the UK continue talks on a small number of pending implementation matters linked to the trade pact, according to an earlier CNBC-TV18 report.
Officials from both countries are currently holding discussions in London to move the agreement closer to operationalisation, it added.
India’s Commerce Ministry confirmed on Monday that an official delegation is in London to advance negotiations related to the implementation of the FTA.
Sources had earlier indicated that India and the UK had resolved one of the remaining issues and exchanged views on two others.
Among the key concerns are Britain’s proposed carbon-related trade measures and its decision to impose 50% tariffs on 88 steel product categories.
Commerce and Industry Minister Piyush Goyal could travel to London if the outstanding matters are settled.
His visit may coincide with a meeting of the India-UK Joint Economic and Trade Committee (JETCO), the institutional platform that promotes trade and investment cooperation between the two countries.
JETCO was established in 2005 and played a key role in launching FTA negotiations during its 15th meeting in New Delhi in January 2022.
Earlier this month, UK Secretary of State for Business and Trade Peter Kyle and Trade Policy Minister Chris Bryant visited India for discussions aimed at strengthening trade ties and speeding up implementation of the agreement.
Commerce Secretary Rajesh Agrawal had said in May that the FTA was close to becoming operational, although a few issues still required resolution.
He noted that the UK’s new steel safeguard measures were introduced after negotiations had largely concluded and therefore needed separate discussions.
The UK is set to cut its tariff-free steel import quotas by 60% from July 1, 2026, a move that has raised concerns among Indian exporters.
Separately, the Commerce Ministry said India is engaging with the European
Union regarding its proposed 20th sanctions package, which could affect some companies operating in India.
The ministry reiterated that India generally follows sanctions adopted through the United Nations system and has handled similar situations in the past.
On exports to West Asia, the ministry said trade has remained resilient despite ongoing geopolitical tensions.
India’s exports to the region stood at $5.3 billion in May 2026, nearly matching the $5.38 billion recorded in May last year.
Officials said exports had weakened in March but recovered during April and May.
India has also been using the Omani ports of Duqm, Sohar and Salalah to support shipments to the region.