The Indian economy will become the world’s third largest economy by 2028 and Britain is keen to develop a strong trade relationship with it, these are the words of British Prime Minister Keir Starmer, who is visiting India. He described the Free Trade Agreement (FTA) between the two countries as a launchpad for the next phase of growth in trade relations.
The important thing here is that the British Prime Minister has come to India with a delegation of 125 British businessmen, which is the largest he has ever brought. This alone gives an idea of how important India is to him. He is keen to increase bilateral trade with India. In the last financial year, the trade between the two countries was 44.1 billion pounds, or about 5.2 lakh crore rupees. Of this, the UK exported 17.1 billion pounds to India and imported 26.6 billion pounds from India.
The landmark trade deal, signed during PM Modi’s visit to London in July, is expected to double bilateral trade by 2030, increase market access and significantly reduce tariffs. The agreement will put British businessmen at an advantage in India, which is expected to become the world’s third-largest economy by 2028.
According to the UK government, the deal could reduce India’s average tariff on British products from 15% to around 3%, allowing goods such as cosmetics, vehicles and medical devices to be sold at more competitive rates. Notably, the whisky tariff will also be reduced from 150% to 75% immediately and further reduced to 40% in the coming years, which will clearly benefit UK businessmen.
Starmer further said that India’s rapid growth will provide Britain with more choice, stability and jobs. Trade Secretary Peter Kyle described the deal with India as the best ever signed with any country in the world and expressed hope that it would further boost trade between the two economic powers.
The leaders of the two countries will increase cooperation in artificial intelligence, telecoms and defence technology under the Technology Security Initiative, which is being seen as a recognition of India’s growing status as a global tech hub. Led by companies such as Rolls-Royce, British Airways and Diego, the partnership marks a transformative chapter in India and the UK’s economic and technology cooperation.
