Sir Keir Starmer is currently in India on a high-profile trade mission, described as a "launchpad for growth" aimed at strengthening economic ties between the UK and India. This visit, his first to the country, underscores the UK government's commitment to leveraging the opportunities presented by the recently signed UK-India trade deal.
Accompanying Starmer is a delegation of 125 prominent figures, including CEOs of major companies like Rolls-Royce, British Telecom, Diageo, London Stock Exchange, and British Airways, as well as leading entrepreneurs, university Vice Chancellors, and cultural institution representatives. This marks the largest ever government trade mission to India, highlighting the significance of the Indian market to the UK's economic strategy.
The primary objective of the mission is to build on the momentum generated by the UK-India trade deal signed in July, which is expected to lower tariffs and improve access for British businesses to India's rapidly growing economy. The deal slashes India's average tariff on UK products from 15 per cent to three per cent, making it easier for British companies to sell a wide range of goods, including soft drinks, cosmetics, cars, and medical devices, to the Indian market. A significant win for the whisky industry will see tariffs halved from 150 per cent to 75 per cent, with further reductions to 40 per cent over the next decade.
Starmer has emphasized his determination to "fly the flag for British businesses" during this visit. He stated that growth in India for British businesses translates to more choices, opportunities, and jobs for the British people. The Prime Minister aims to secure new opportunities, encourage investments, and finalize deals that will drive growth and create jobs in the UK.
The trade mission also recognizes the importance of small and medium-sized enterprises (SMEs) and entrepreneurs. The trade deal is expected to break down barriers and facilitate easier trade with India for businesses of all sizes.
During the two-day visit, Starmer is scheduled to meet with Prime Minister Narendra Modi to discuss ways to build on the Comprehensive Economic and Trade Agreement (CETA) signed in July. The two leaders will also review 'Vision 2035', a 10-year roadmap for cooperation in key sectors such as semiconductors, critical minerals, and defense. Both leaders are expected to deliver keynote addresses at the sixth edition of the Global Fintech Fest in Mumbai.
The UK government views the trade deal with India as the best agreement ever secured with the country, positioning British businesses favorably to access a vast and expanding market. New Delhi anticipates significant benefits from increased trade, investment, technology, innovation, mobility, and education. The agreement, which is India's most comprehensive FTA, covers 26 chapters and aims to double bilateral trade in goods and services to around $56 billion by 2030. India expects the CETA to boost its exports in labor-intensive sectors such as textiles, gems and jewellery, engineering goods, and auto parts, while also supporting growth in IT, financial services, education, and business services.
While in India, the business delegation is expected to advocate for policies that support their growth and competitiveness.
