UK PM Keir Starmer Urges Swift Implementation of India-UK Free Trade Agreement
British Prime Minister Keir Starmer is currently on a two-day visit to India, aiming to fast-track the recently signed India-UK Free Trade Agreement (FTA) and deepen bilateral economic ties. The visit follows the historic trade accord signed during Indian Prime Minister Narendra Modi's visit to the UK in July 2025.
Details of the Trade Agreement
The India-UK FTA is hailed as the largest trade deal the UK has secured post-Brexit and is seen as a major milestone in the bilateral relationship between the world's fifth and sixth largest economies. The agreement aims to significantly reduce tariffs on a wide array of goods, including textiles, automobiles, and the UK’s iconic Scotch whisky. For instance, India’s average tariff on British products will fall from 15% to 3%, while tariffs on Scotch whisky are set to drop from 150% to 75% immediately, and further decline to 40% over the next decade. This tariff reduction positions British exporters advantageously in India’s fast-growing market.
Negotiated over three years and finalized in May 2025, the FTA is projected to boost bilateral trade by £25.5 billion (approximately $34 billion) by 2040. UK officials have emphasized these estimates as baseline numbers, indicating strong potential for further growth. The agreement also promises to provide easier market access for businesses from both countries, enhancing investment, innovation, and trade flows.
Starmer’s Vision and the Visit’s Agenda
Prime Minister Starmer described the FTA as more than just a legal document—a "launchpad for growth" that opens unparalleled opportunities for economic cooperation. With India projected to become the world’s third-largest economy by 2028, Starmer sees this deal as pivotal for accelerating trade and making it "quicker and cheaper."
During his visit, Starmer is accompanied by over 125 leaders from business, culture, and academia, including executives from Rolls-Royce, British Telecom, Diageo, and British Airways. The delegation’s mission is to prepare UK companies to capitalize on the FTA’s benefits fully. Starmer emphasized that the deal creates opportunities not only for India’s growth but also for stability, job creation, and increased choices in the UK economy.
Prime Minister Narendra Modi and Starmer are scheduled for talks to discuss further deepening of ties, including avenues for expanding cooperation in fintech, defense, Scotch whisky exports, and more.
Consequences and Strategic Implications
The India-UK FTA is expected to have wide-ranging consequences for both countries:
Economic Growth: The agreement is projected to raise UK GDP by £4.8 billion annually and add £2.2 billion to wages in Britain, contributing to job creation and economic prosperity. For India, it provides a powerful incentive to continue liberalizing trade and enhancing bilateral ties.
Global Positioning: With global trade tensions and shifting alliances, the India-UK FTA positions both nations as reliable, predictable partners amidst uncertainty, notably contrasting with disruptive trade policies experienced elsewhere.
Business Opportunities: UK companies in sectors like automotive, pharmaceuticals, and consumer goods stand to benefit from reduced tariffs and market access. Simultaneously, Indian companies will find it easier to enter the UK market, boosting two-way trade and investment.
Political Impact: For Starmer, pushing this FTA is part of a broader economic agenda to reverse domestic challenges in the UK, stimulate growth, and strengthen international trade relationships.
Broader Cooperation: The visit and FTA also embed economic cooperation within a wider strategic framework involving innovation, culture, climate goals, and global geopolitics.
Challenges and Considerations
While the FTA promises many gains, challenges remain. Starmer clarified that the agreement does not relax visa rules for Indians entering the UK, a sensitive issue for many. Additionally, some diplomatic and regional complexities may influence the pace of implementation and benefit realization.
The India-UK Free Trade Agreement marks a significant chapter in bilateral relations, combining economic opportunities with strategic partnership prospects. Prime Minister Keir Starmer’s visit underscores the urgency to implement the deal swiftly, making it a cornerstone for future growth and collaboration between the two dynamic economies.