The recent meeting between UK Prime Minister Keir Starmer and Indian Prime Minister Narendra Modi in London culminated in the signing of a landmark Free Trade Agreement (FTA) and the unveiling of the "UK-India Vision 2035". The event was punctuated by moments of warmth and camaraderie, exemplified by Starmer's remark, "I think we understand each other well," during a joint press conference. This statement followed Modi's gracious intervention to ease a translator's difficulty, further highlighting the positive rapport between the two leaders.
The Comprehensive Economic and Trade Agreement (CETA), as the FTA is also known, is projected to boost bilateral trade by $34 billion annually. This deal is particularly significant for the UK, representing its largest trade agreement since leaving the European Union in 2020. For India, it signifies its most substantial strategic partnership with a developed economy, potentially serving as a template for future agreements with the EU and other regions.
During the joint press conference, Modi described the FTA as a "blueprint for our shared prosperity". He emphasized the mutual benefits, noting that Indian textiles, footwear, gems, jewelry, seafood, and engineering goods would gain better access to the UK market. Simultaneously, Indian consumers and industries will have access to UK-made products, such as medical devices and aerospace parts, at more affordable prices. Starmer echoed this sentiment, stating that the FTA will "bring huge benefits to both of our countries, boosting wages, raising living standards and putting more money in the pockets of working people".
The "UK-India Vision 2035" outlines a broader plan for collaboration on defense, technology, climate change, education, and national security. This long-term vision underscores the commitment of both nations to strengthen their partnership across multiple sectors. Modi highlighted that the agreement includes a Double Contributions Convention, which will benefit the service sectors of both countries, particularly technology and finance.
Beyond the economic and strategic implications, the meeting also featured lighter moments that underscored the personal connection between the two leaders. Modi used a cricket analogy to describe the India-UK partnership, noting, "There may be a swing and a miss at times, but we always play with a straight bat". He also acknowledged the shared passion for cricket in both nations, further cementing the sense of camaraderie. Furthermore, Modi gifted a tree sapling to King Charles III, symbolizing the "Ek Ped Maa Ke Naam" initiative.
The India-UK FTA is expected to have a wide-ranging impact, with 99% of Indian products gaining duty-free access to the UK market. The agreement also includes a social security agreement, allowing Indian companies to send employees to the UK without incurring double social security contributions. Tariffs on automobiles will see a significant reduction, from over 100% to 10%, subject to quota restrictions. Both countries aim to double their trade value to USD 120 billion by 2030 through this agreement.
Starmer emphasized that the FTA sends a strong message that the UK is open for business, creating jobs and opportunities across the country. The agreement is projected to result in 2,200 jobs in the UK and £6 billion in investment from British and Indian businesses. Moreover, it is expected to add £4.8 billion to the UK's gross domestic product (GDP). The leaders also addressed the importance of tackling illegal migration and organized crime, agreeing to enhance cooperation in these areas.
Overall, the meeting between Starmer and Modi marked a significant step forward in India-UK relations, characterized by economic cooperation, strategic alignment, and personal rapport. The FTA and Vision 2035 lay the foundation for a strengthened partnership that promises to benefit both nations in the years to come.
