UK PM Keir Starmer Promotes India-UK Trade Opportunities in Mumbai

British Prime Minister Keir Starmer emphasized the immense potential of the India-UK free trade agreement during his visit to Mumbai on March 13, 2024. This marks Starmer’s first official trip to India since taking office, and he is accompanied by a delegation of 125 prominent business leaders and university vice chancellors. The visit is aimed at enhancing bilateral trade relations, particularly in light of the recent trade deal signed in July 2023.

Starmer described the trade agreement as a “launchpad” for expanding economic ties with India, which is projected to become the world’s third-largest economy by 2028. “The opportunities waiting to be seized are unparalleled,” he stated, highlighting the significance of the agreement in facilitating quicker and cheaper trade between the two nations.

During a scheduled meeting with Indian Prime Minister Narendra Modi, Starmer and Modi are expected to discuss strategies for further strengthening the partnership. The British leader pointed out that growth in India would lead to increased choices and job stability for the British populace.

The free trade agreement, finalized during Modi’s visit to London, is designed to enhance market access, reduce tariffs, and double bilateral trade by 2030. The agreement is set to lower India’s average tariff on British goods from 15 percent to just 3 percent, significantly easing the entry of British products such as soft drinks, cosmetics, cars, and medical devices into the Indian market.

Starmer remarked, “It’s not just a piece of paper; it’s a launchpad for growth.” He noted that the trade deal is the most advantageous secured by any country with India, placing British businesses in a prime position to capitalize on the burgeoning market. The UK aims to “turbocharge” its trade with India, which is recognized as one of the fastest-growing economies globally.

The delegation includes executives from major companies such as Rolls Royce, British Telecom, Diageo, London Stock Exchange, and British Airways. Peter Kyle, the UK’s Secretary of State for Business and Trade, emphasized the ambitious nature of this initiative, stating, “Our deal is the best any country has ever secured with India.”

Additionally, whisky producers are expected to benefit significantly from the agreement, as tariffs on whisky will be reduced from 150 percent to 75 percent immediately, with a further decrease to 40 percent over the next decade. This adjustment aims to give UK whisky producers a competitive edge over international rivals.

The current visit and the trade agreement signify a pivotal moment in UK-India relations, fostering not only economic growth but also strengthening the long-term partnership between the two nations. As discussions continue, both leaders aim to harness the potential of this agreement to enhance trade and investment opportunities, ultimately benefiting their respective economies.