British Prime Minister Keir Starmer began a two-day visit to India on Wednesday aimed at furthering the trade deal signed between the countries in July.
The UK government described it as the largest British trade mission ever, involving more than 100 leaders from the business, cultural and university sectors.
Upon arriving in Mumbai, Starmer told trade mission representatives that the deal “offers huge opportunities,” adding that he had asked his team to implement it “as quickly as humanly possible.”
“Our job is to make it easier for you to take advantage of opportunities,” Starmer encouraged businesspeople. “On the plane home, I want each of you to tell me what you got from this trip – a deal, a connection.”
“This is an amazing opportunity. Let’s go out and take advantage of it,” he said, calling the deal a “launchpad for growth.”
What is the trade agreement about?
After three years of on-and-off talks, Britain and India concluded talks on a trade deal in May. The two sides have stepped up their efforts to reach an agreement amid the tariff turmoil initiated by US President Donald Trump.
In July, a free trade agreement (FTA) was signed during Indian Prime Minister Narendra Modi’s visit to London. The agreement reduced tariffs on goods ranging from textiles to whiskey and cars, allowing businesses to access more markets.
India is one of the largest whiskey markets in the world. Tariffs on whiskey and gin will be reduced from 150% to 75% and then to 40% by the tenth year of the deal, New Delhi will also reduce tariffs on cars to 10% from 100% currently.
On the other hand, 99% of Indian exports to the UK will face zero tariffs. In particular, Britain will remove tariffs on textile imports, which will benefit India’s large textile industry.
The deal aims to increase bilateral trade by an additional £25.5 billion (€29.5 billion or $34 billion) by 2040.
Starmer described the India-UK FTA as “hugely important”, saying “it is the biggest deal we have done since leaving the EU.”
Starmer will meet Modi on Thursday
Starmer will hold bilateral talks with Modi on Thursday. Both sides have expressed their intention to ratify the agreement and implement it within the next year.
Modi said he looked forward to Thursday’s meeting with Starmer and taking bilateral relations forward.
However, the trade deal will not be the only topic of conversation between the two leaders. Modi’s close ties with Russian President Vladimir Putin could complicate their discussions.
India continues to buy oil from Moscow despite efforts by Western countries to boycott the Russian war machine. As a result, Delhi has faced Trump’s sanctions.
Edited by: Shawn Sinico