British Prime Minister Keir Starmer and India’s Prime Minister Narendra Modi met in Mumbai on Thursday, celebrating what they called a “transformative” new trade relationship already delivering results.
The UK and India inked a landmark trade agreement in July, cutting tariffs on everything from whisky and cars to textiles and spices, and opening markets for both countries’ businesses. The deal aims to boost trade by £25.5 billion ($34 billion) by 2040.
“In the three months since we actually signed that trade deal, we’ve already seen a £6 billion boost in trade and investment,” Starmer told business leaders at the India-UK CEO Forum. “That’s on top of the growth we’d already seen last year.”
Modi echoed that optimism, telling the audience he was confident the two countries would double their trade “well before the target.” Speaking in Hindi, he said Starmer’s visit “reflects the new energy and broad vision in this partnership,” adding, “India’s dynamism and the UK’s expertise together create a unique synergy.”
Both leaders are looking to expand global trade ties as the US under President Donald Trump continues to impose tariffs — including new 50% levies on some Indian goods tied to Russian oil imports. The UK, which secured its own deal with Washington in May, has also faced smaller tariff measures.
Starmer’s two-day trade mission to India included over 100 representatives from the UK’s business, cultural, and academic sectors.
“This is just the start,” he said later at a fintech conference. “It’s time to invest in the United Kingdom, invest in this relationship, and invest in our shared future.”
The two governments announced new plans to create an India–UK Connectivity and Innovation Centre, a joint hub for artificial intelligence research, and a critical minerals industry guild to strengthen green supply chains. India’s Ministry of External Affairs said the partnerships aim to accelerate both nations’ progress toward sustainable development.
In a separate announcement, Starmer’s office confirmed that 64 Indian companies would collectively invest £1.3 billion ($1.73 billion) in the UK, a sign of growing confidence between the two markets.
Defence cooperation was also on the agenda. London signed a £350 million ($465 million) contract to supply the Indian army with lightweight multi-role missiles built in Northern Ireland, while a second phase, valued at £250 million ($332 million), will focus on developing electric engines for naval vessels.
While the two countries maintain some differences over global issues, including the war in Ukraine, both sides underlined their commitment to dialogue and mutual respect.
“We discussed ways to achieve peace, that’s the outcome we both want,” Starmer said.
India has long balanced its strategic partnerships with major global powers, continuing cooperation with Russia in energy and defence sectors while expanding trade and technology ties with Western partners.
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