Unprecedented Boost: PM Modi and UK PM Starmer Forge Robust UK-India Trade Deal in London

PM Modi and UK PM Keir Starmer solidify a historic UK-India trade deal, aiming to boost economies, create jobs, and enhance bilateral relations. Read about this transformative agreement and its impact.

A New Era of Collaboration: The Landmark UK-India Trade Deal

• Historic Encounter: Prime Minister Narendra Modi and his British counterpart, Keir Starmer, convened in London for a crucial bilateral meeting on Thursday, July 24, 2025. This high-profile discussion preceded the formal signing of a monumental UK-India Free Trade Agreement (FTA), poised to significantly strengthen economic bonds between the two nations.
• Pivotal Discussions at Hawtry Room: The leaders engaged in a focused one-on-one discussion within the historic Hawtry Room. Their agenda was clear: to finalize the intricacies of what is being lauded as India’s most extensive trade pact and the United Kingdom’s most substantial post-Brexit deal. This meeting underscores the commitment of both governments to fostering deeper economic integration.

UK-India Trade Deal: A Plan for Change in Action

• Keir Starmer’s Vision: Hours before the meeting, UK Prime Minister Keir Starmer expressed his enthusiasm for the India trade deal, labelling it a “Plan for Change in action.” He shared his conviction on X (formerly Twitter), stating, “A landmark deal with India means jobs, investment and growth here in the UK. It creates thousands of British jobs, unlocks new opportunities for businesses and puts money in the pockets of working people. That’s our Plan for Change in action.” This highlights the domestic economic benefits anticipated from the UK-India Trade Deal.
• Projected Economic Impact: According to an earlier statement from the British High Commission, the UK-India Trade Deal is projected to elevate bilateral trade by an impressive £25.5 billion annually. This substantial increase is expected to generate thousands of jobs, reduce tariffs, and expand market access for businesses across both countries, signaling a prosperous future for the UK-India Trade Deal.

Broadening Horizons: The UK-India Vision 2035

• Beyond Trade: Beyond the immediate economic benefits of the UK-India Trade Deal, PM Modi and PM Starmer are also slated to unveil the UK-India Vision 2035. This renewed Comprehensive Strategic Partnership will serve as a detailed roadmap for enhanced collaboration in various critical sectors.
• Key Areas of Cooperation: The Vision 2035 encompasses a wide array of cooperative areas, including:
  • Defence
  • Technology
  • Climate action
  • Education
  • National security
  This holistic approach signifies a commitment to a long-term, multi-faceted partnership that extends well beyond mere commerce, cementing the strategic importance of the UK-India Trade Deal.

Voices on the UK-India Trade Deal

• Prime Minister Starmer’s Optimism: Prime Minister Keir Starmer articulated the transformative potential of the agreement, remarking, “This landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses, and drive growth in every corner of the country.” He reiterated that this deal aligns perfectly with his “Plan for Change” aimed at improving the financial well-being of British citizens and easing the cost of living.
• Current Trade Landscape: India currently stands as the UK’s 12th largest trading partner, with bilateral trade exceeding £36 billion. The new agreement is designed to further optimize this relationship.
• Mutual Market Benefits:
  • For British Products: The proposed agreement intends to decrease average tariffs on British goods such as cars, medical devices, cosmetics, and soft drinks from 15% to a mere 3%, directly benefiting Indian consumers. This reduction underscores the consumer-centric approach of the UK-India Trade Deal.
  • For Indian Exporters: Concurrently, the deal will streamline market entry for Indian exporters, further boosting the UK’s current imports of Indian goods, valued at £11 billion. This reciprocal benefit highlights the equitable nature of the UK-India Trade Deal.
• Emerging Economic Superpower: UK Business and Trade Secretary Jonathan Reynolds lauded India as “an emerging economic superpower of the 21st century,” emphasizing that this trade pact heralds a new and exciting phase in bilateral relations.
• Building on Past Successes: The UK-India Trade Deal also builds upon the UK-India Technology Security Initiative, which was signed last year. Both nations have reaffirmed their dedication to harnessing frontier technologies and deepening cooperation on national security and border protection, demonstrating a continuous and evolving partnership.

This historic UK-India Trade Deal represents a significant milestone in international relations, promising a future of shared prosperity, innovation, and strategic alignment between two global powers.