UK Prime Minister Keir Starmer has commenced his first official visit to India, leading a delegation of over a hundred leaders from business, culture, and academia. This two-day visit, which began on Wednesday, aims to strengthen the India-UK partnership following the signing of a Free Trade Agreement (FTA) earlier this year. The FTA, concluded in July during Indian Prime Minister Narendra Modi's visit to London, is expected to enhance trade relations by reducing tariffs on various goods, including textiles, whisky, and automobiles, while providing greater market access for businesses from both nations.

The FTA is a significant milestone in the bilateral relationship, which has seen India and the UK engage in three years of negotiations. The agreement is anticipated to boost bilateral trade by an additional £25.5 billion by 2040, with Starmer emphasizing that it serves as a "launchpad for growth". He noted that India is projected to become the third-largest economy in the world by 2028, highlighting the vast opportunities for collaboration.

During his visit, Starmer will hold discussions with PM Modi and participate in the Global Fintech Fest in Mumbai. The two leaders are expected to review progress in various sectors under the India-UK Comprehensive Strategic Partnership, which includes trade, technology, defence, and climate initiatives. The Indian diaspora in the UK, comprising over 1.8 million people, plays a crucial role in this partnership, contributing significantly to the UK’s economy.

Bilateral trade between India and the UK reached £42.6 billion in 2024, marking an 8.3% increase from the previous year. India’s exports to the UK were valued at £25.5 billion, while imports stood at £17.1 billion. The FTA is projected to provide Indian businesses with competitive access to key sectors, including textiles and engineering goods, while also benefiting small and medium enterprises (SMEs).

Investment is another vital aspect of the India-UK relationship. India is the second-largest source of foreign direct investment in the UK, contributing £13.1 billion in 2023. There are nearly 971 Indian companies operating in the UK, generating substantial revenue and employment. Conversely, the UK is India’s sixth-largest investor, with over 660 British firms active in India.

The visit also aims to enhance cooperation in technology and innovation, with initiatives like techXchange connecting Indian startups with British investors. In aviation, connectivity remains strong, with multiple airlines operating regular flights between major Indian cities and London.

Starmer's visit underscores the commitment of both nations to deepen their economic ties and explore new avenues for collaboration, reinforcing the importance of the India-UK partnership in a rapidly changing global landscape.