Starmer in India to build business ties after striking trade deal

(Patria) - British Prime Minister Keir Starmer begins a two-day visit to India today, joined by over a hundred leaders from the business, cultural and university sectors in an effort to promote the recently signed trade agreement between the two countries, Reuters reported.

The United Kingdom and India signed a free trade agreement in July during Indian Prime Minister Narendra Modi's visit, reaching an agreement to reduce tariffs on goods from textiles to whiskey and cars, and allowing greater market access for businesses.

Talks on the trade agreement concluded in May after three years of breaks and negotiations, with the parties accelerating efforts to reach an agreement in the shadow of tariff disputes initiated by US President Donald Trump. The agreement between the world's fifth and sixth largest economies aims to increase bilateral trade by an additional $34 billion by 2040.

The government stated that these projections were a lower bound, not an upper bound, and the visit of heads of companies such as oil giant BP, engine manufacturer Rolls-Royce, and telecommunications firm BT was aimed at maximizing the UK's largest trade deal after Brexit.

“It is not just a piece of paper, it is a springboard for growth,” Starmer said, adding that India is projected to be the third largest economy in the world by 2028.

“The opportunities waiting to be seized are unparalleled.”

Starmer will hold bilateral talks with Modi on Thursday. Both sides have said they want to ratify the agreement and bring it into force within the next year.

Growth is one of Starmer's key priorities as he tries to reverse a slump in the polls, and the November fiscal budget is expected to show an awkward fiscal picture.

British Airways, owned by IAG, announced that it will add a third daily flight from London Heathrow Airport to Delhi in 2026, while Manchester Airport also announced it will add a route to Delhi, operated by IndiGo.

The trip also includes representatives from drinks manufacturer Diageo and the Scotch Whisky Association, and the trade agreement between the UK and India will reduce tariffs on whiskey faced by British companies from 150% to 75%, before reducing them to forty percent over the next decade.

The industry is lobbying the British government to reduce US tariffs after the agreement between the countries did not cover whiskey.