Modi and Starmer Praise New India-UK Trade Deal During Mumbai Visit

Indian Prime Minister Narendra Modi welcomed UK Prime Minister Keir Starmer in Mumbai to celebrate a new trade deal expected to boost bilateral trade by $34 billion. The agreement will cut tariffs on key goods, expand cooperation in technology and green industries, and allow UK universities to open campuses in India. Both leaders hailed the partnership as a step toward a stronger, future-focused relationship.

Indian Prime Minister Narendra Modi welcomed UK Prime Minister Keir Starmer in Mumbai on Thursday, marking a significant moment in the strengthening of bilateral relations between the two nations. The meeting came as both leaders celebrated a newly signed trade deal that they described as a transformative step toward deepening economic cooperation and fostering long-term growth.

Starmer’s two-day visit to India’s financial hub was accompanied by a large delegation of around 125 prominent figures from the United Kingdom’s business, cultural, and academic sectors. Their presence signaled a renewed push to explore opportunities within India’s expanding economy, which continues to attract global investors seeking access to one of the world’s fastest-growing markets. The Indian government has been stepping up efforts to draw in foreign investment as part of its broader strategy to boost manufacturing, technology, and infrastructure development.

India, which surpassed the United Kingdom in 2022 to become the world’s fifth-largest economy, has continued its upward trajectory. According to figures from the International Monetary Fund (IMF), the country is expected to overtake Japan to become the fourth-largest economy later this year. The United Kingdom, currently ranked sixth globally, views this partnership as essential to revitalizing its own trade ambitions in the post-Brexit era.

During a joint press conference, Keir Starmer emphasized the importance of the new chapter in India–UK relations. “This relationship matters more than ever,” he said, highlighting that the trade deal would open fresh opportunities for British businesses in India. “We’re opening up new opportunities in India for British businesses, opportunities that other countries simply do not have. It has given us a unique edge.” He also described the partnership as “a new modern relationship focusing on the future,” reflecting the shared priorities of innovation, sustainability, and mutual prosperity.

Prime Minister Modi, in his remarks, echoed Starmer’s optimism, describing the collaboration as “an example of stability in an uncertain world.” He noted that the partnership between India and the United Kingdom symbolized a global model for cooperation based on shared values of democracy, enterprise, and mutual respect.

While in Mumbai, Starmer reiterated that the United Kingdom was fully committed to maximizing the potential of the trade deal, which is expected to take effect within a year. The current level of trade between both countries stands at approximately $54.8 billion (€47.4 billion), supporting over 600,000 jobs across India and the UK. According to estimates by the UK government, the new agreement could boost trade by an additional $34 billion and increase British exports to India by nearly 60%, representing a substantial leap in economic collaboration.

The deal includes significant tariff reductions on a wide range of goods. India will lower import duties on products such as cosmetics, medical devices, Scotch whisky, and English gin, while the UK will reduce tariffs on Indian exports including clothing, footwear, food items, and spices. This exchange is expected to benefit consumers and businesses in both nations, encouraging a smoother flow of goods and services.

Another major feature of the partnership is the inclusion of educational cooperation. UK universities have received approval to open campuses in India, an unprecedented move that will strengthen academic ties and provide Indian students access to world-class British education without leaving their home country. Additionally, both sides agreed to intensify collaboration in technology and innovation. A joint centre for artificial intelligence will be established to support research, digital transformation, and ethical AI development.

An Indian foreign ministry statement also confirmed the creation of a critical minerals industry guild, designed to secure sustainable supply chains and support the transition to green technologies. This initiative aims to enhance industrial resilience and promote environmental sustainability, aligning with global efforts to reduce carbon emissions.

The visit and the agreements reached underscore the growing importance of the India–UK partnership on the global stage. Both governments view the collaboration as more than a trade initiative—it represents a broader strategic alliance that could shape the future of technology, education, and economic policy in both countries. As the new trade deal moves toward implementation, expectations are high that it will not only boost commerce but also deepen people-to-people connections, making India and the United Kingdom stronger partners in an increasingly interconnected world.