NEW DELHI: British Prime Minister Keir Starmer, on a two-day visit to India, has termed the recently signed India–UK Free Trade Agreement the “best secured trade deal in British history” -- a landmark pact he described as a turning point in bilateral relations.
Positioning the deal as a catalyst for a new era of economic and strategic ties, Starmer vowed to fast-track its implementation “as soon as humanly possible,” a day ahead of his bilateral talks with Prime Minister Narendra Modi in Mumbai.
Starmer accompanied by a high-powered delegation of British CEOs, university heads, entrepreneurs, and cultural leaders, signals a renewed push to fast-track the benefits of the FTA signed in July 2025. “We signed a major trade deal with India in July, the best secured by any country, but the story doesn’t stop there,” he said. “India is poised to become the third-largest economy by 2028. Trade with them is about to become quicker, cheaper, and more ambitious.”
The India–UK Comprehensive Economic and Trade Agreement (CETA) promises sweeping tariff reductions. India will slash tariffs on 90% of UK product lines- average duties dropping from 15% to just 3%. In return, the UK will eliminate tariffs on 99% of Indian exports. Whisky producers stand to gain immediately, with tariffs falling from 150% to 75%, then to 40% over the next decade — giving the UK a sharp competitive edge in a booming market.
This is just the beginning. The FTA, once fully implemented, is projected to raise bilateral trade by GBP 25.5 billion annually, with UK exports to India set to jump nearly 60%. The current trade balance sits at USD 5.9 billion in India’s favour (FY 2024–25), with exports from India reaching USD 14.5 billion and imports from the UK at USD 8.6 billion.
British Airways has announced plans to introduce a third daily flight between Delhi and London Heathrow by 2026, pending regulatory approvals.
Meanwhile, Manchester Airport will launch a direct Delhi route operated by IndiGo, adding to its Mumbai connection. These expansions are forecast to generate over GBP 50 million in exports, GBP 25 million in tourism revenue, and create 450 jobs, while fostering deeper research and business ties.
The UK’s top universities are eyeing India for expansion. Vice Chancellors accompanying the delegation are exploring campuses and joint programmes.
Lord Karan Bilimoria, of the Indian Chamber of Commerce UK, told The New Indian Express, “British universities are the best in the world. India needs world-class education capacity, and this partnership benefits both countries.”
The move aligns with India’s evolving higher education policy, which now allows foreign universities to operate independently in the country.
Cultural diplomacy also played a starring role. Starmer declared: “Bollywood is back in Britain, and it’s bringing jobs, investment, and opportunity — all while showcasing the UK as a world-class hub for filmmaking.”
Film, television, and streaming content are now being positioned as vital sectors under the FTA, with collaborative productions set to increase. While the main contours of the FTA are agreed upon, several chapters -- including digital trade, services, and intellectual property — are still being negotiated. In Mumbai, India’s Commerce Minister Piyush Goyal met UK Business Secretary Peter Kyle to chart the next phase of implementation.
Both sides have set an ambitious goal to double bilateral trade by 2030, turning the deal into more than just a tariff arrangement — but a strategic, cross-sectoral partnership.
Starmer is scheduled to meet Prime Minister Narendra Modi on Thursday, where the two leaders are expected to outline a roadmap for India–UK relations.
