Britain’s Prime Minister aims to leverage the country’s largest-ever trade delegation to India to expand on a recent bilateral agreement.
UK Prime Minister Keir Starmer has touched down in India, accompanied by an extensive group of top British business leaders, entrepreneurs, and university heads. This visit is designed to significantly accelerate commercial ties between the two nations.
Commencing in Mumbai, the two-day trade mission seeks to enhance economic collaboration between India and the UK, ranked as the world’s fifth and sixth largest economies respectively. Both countries are eager to reshape their trade dynamics amid the challenges posed by high tariffs introduced by the previous US administration under President Donald Trump.
In a recent move, the United States imposed a 50% tariff on Indian imports, targeting New Delhi’s substantial purchases of Russian oil amid ongoing geopolitical tensions. Meanwhile, the UK, which finalized a trade agreement with the US in May, has faced comparatively lower tariff barriers.
Starmer emphasized that this mission builds upon a pivotal trade agreement signed in July.
“Our July trade deal with India stands as the most comprehensive secured by any nation, but this is just the beginning,” he remarked. “This agreement is more than a document-it’s a catalyst for growth. With India projected to become the world’s third-largest economy by 2028, and trade becoming more efficient and cost-effective, the potential for expansion is immense.”
Indian Prime Minister Narendra Modi, scheduled to meet Starmer on Thursday before jointly addressing a fintech summit in Mumbai, expressed optimism about strengthening their “shared vision for a prosperous and resilient future.”
Current trade between the UK and India totals $54.8 billion, supporting over 600,000 jobs across both countries, according to AFP.
Emerging Prospects in Trade
The new agreement entails India reducing tariffs on British exports such as whisky, beauty products, and medical equipment, while the UK will lower duties on Indian imports including apparel, footwear, and seafood like frozen shrimp.
According to UK government forecasts, this trade deal is expected to boost the UK’s GDP by £4.8 billion ($6.4 billion) annually and increase exports to India by nearly 60%.
Starmer encouraged his delegation by highlighting that trade opportunities are already materializing, with commerce between the two nations accelerating thanks to the agreement.
During his visit to the Yash Raj Film studio, Starmer announced that starting next year, three Bollywood productions will be filmed in the UK.
“The return of Bollywood to Britain brings with it employment, investment, and new prospects, while also promoting the UK as a premier destination for international film production,” he stated.
Starmer also toured a community initiative linked to the English Premier League, where he engaged with young Indian football talents and coaches, underscoring the league’s widespread appeal in India.
The UK delegation features prominent figures such as British Airways CEO Sean Doyle, BP CEO Murray Auchincloss, Airbus’s Executive Vice President for International Wouter van Wersch, alongside vice chancellors from 14 UK universities.
