British Prime Minister Keir Starmer has begun a two-day visit to India, declaring his intention to have the recently signed trade deal with India implemented as quickly as “humanly possible.”
The UK-India Trade Deal and Its Goals
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The Agreement: Britain and India, the world’s fifth- and sixth-largest economies, signed a Free Trade Agreement (FTA) in July during a visit by Indian Prime Minister Narendra Modi. The deal concluded three years of talks, hastened by the need to secure trade stability amid global tariff turmoil.
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Economic Target: The FTA aims to boost bilateral trade by at least £25.5 billion ($34 billion) by 2040, cutting tariffs on a range of goods from textiles and whisky to cars, while also increasing market access for businesses.
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Starmer’s Priority: Starmer emphasized that the trade projections are a minimum, not a maximum, for the deal’s ambition. He stated that the government’s job is to make it easier for businesses to seize the “huge opportunities” presented by Britain’s largest post-Brexit trade deal.
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Timeline: Both governments aim to ratify and bring the deal into effect within the next year. Starmer is set to hold bilateral talks with Modi on Thursday.
The Business and Political Context
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Delegation: Starmer’s visit is accompanied by a large delegation of over a hundred leaders from business, culture, and university sectors, including executives from major companies like BP, Rolls-Royce, and BT.
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Focus on Growth: Driving economic growth is a key priority for Starmer as he seeks to improve his Labour party’s political standing ahead of a November fiscal budget, which is expected to reveal a challenging financial picture.
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Business Perspective: The British Chambers of Commerce urged Starmer to focus on growth through strengthening trade ties with partners like India and the Gulf (where separate trade talks are ongoing). The group argued that the government is capable of pursuing new FTAs while simultaneously addressing the fallout from a global trade war and seeking lower U.S. tariffs.
