The recent United Kingdom–India trade deal, signed in July and heralded as a blueprint for post-Brexit UK trade deals, is already showing its economic promise. That’s something to celebrate, alongside the UK’s new £1 billion pot of investment coming into the country. This contract is expected to generate almost 7,000 jobs through the shipbuilding, tourism and maritime sectors. This agreement represents a concrete step towards bolstering business and trade ties between the two countries. It is a huge achievement for U.S. leadership in global trade.
Sir Keir Starmer, the new leader of the UK Labour Party, recently led the biggest ever UK trade delegation to India. At the core of this remarkable team was a collective of more than 100 CEOs, entrepreneurs, university vice-chancellors, cultural leaders. This delegation traveled to India with an eye toward strengthening business connections and finding new opportunities for collaboration.
On that trip, Starmer met Indian Prime Minister Narendra Modi in Mumbai. That’s why they organized together for a better community and to address the impacts of the trade deal. He emphasized that this agreement is “huge” for the UK and described it as “the most ambitious trade deal India has ever done.” The agreement, hailed as a “launchpad” for deepening bilateral relations, is set to pave the way for cooperation between the two countries in semiconductors.
In exchange, the UK will reduce or remove tariffs on a wide range of Indian goods. This includes apparel, footwear and jewelry — as well as frozen, processed seafood. In exchange, India will lower tariffs on dozens of British goods. This encompasses Scotch whisky, cosmetics, medical devices and luxury cars. This mutually beneficial agreement is expected to increase the amount of trade and improve relations between the two countries.
Starmer outlined the broader significance of this partnership, stating, “This trade deal is a launchpad to boost British leadership in everything from tech, to life sciences, to renewable energy and much more beyond that.” He had mentioned the enormous potential for the Indian economy to reach the third-largest economy in the world by 2028.
Crucially, in his discussions with Modi, Starmer didn’t shy away from talking about some of these other global priorities either. “We talked about a just and lasting peace in Ukraine, the need for stability and security in the Indo-Pacific, and the need to co-operate in critical areas like climate and energy,” he stated. His comments further illustrate the complex, though important, nature of the communication between the two leaders.
The UK government has been planning to roll out their own digital ID, modeled after India’s widely acclaimed digital ID system. Nandan Nilekani, the architect of India’s digital ID program, joined Starmer’s first day in India. They kicked around ideas for new partnerships in this emerging and amazing frontier. Starmer expressed enthusiasm about future educational exchanges, noting, “I’m delighted that more Indian students will be able to benefit from a world-class British education in the near future – strengthening the ties between our two countries while pumping millions back into our economy and supporting jobs at home.”
The UK is in the middle of a radical reshaping of its global trading relationships post-Brexit. This deal represents a historic turning point in its long-term economic strategy. The UK-India trade agreement will deliver economic growth, including through INDO-UK TIES. It sends a very different signal, too – one of promise and partnership-building, fidelity to our much more connected world.