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Unlocking Unrivaled Potential: Keir Starmer on the India-UK Free Trade Agreement

October 8, 2025
in World
Reading Time: 3 min

British Prime Minister Keir Starmer kicked off his inaugural visit to India on Wednesday, October 8, 2025, emphasizing the extraordinary opportunities presented by the India-U.K. Free Trade Agreement (FTA).

He described the trade pact as a “launchpad” designed to significantly boost bilateral trade and foster economic growth, particularly as India is projected to become the world’s third-largest economy by 2028.

Accompanied by a substantial delegation of 125 leading U.K. business figures, entrepreneurs, and university Vice-Chancellors, the British leader arrived in Mumbai for a two-day engagement.

Prime Minister Starmer is scheduled to hold extensive discussions with Prime Minister Narendra Modi on Thursday, October 9, 2025, to further strengthen the bilateral relationship.

Reflecting on the milestone, the British Prime Minister stated, “We finalized a significant trade agreement with India in July—the most comprehensive deal any country has ever secured—but this is just the beginning.”

He elaborated, “This is more than just a document; it’s a foundation for immense growth. As India heads towards becoming the third-largest global economy by 2028, and with trade set to become faster and more affordable, the potential awaiting us is truly extraordinary.” Starmer emphasized that India’s economic expansion translates into greater choice, stability, and job creation for the British populace.

The FTA’s provision for duty-free access for U.K. goods is expected to significantly boost foreign investment into India.

This visit follows just two and a half months after both nations formalized the historic Free Trade Agreement, a pact designed to enhance market access, reduce tariffs, and double bilateral trade by 2030. The foundational agreement was cemented during Prime Minister Modi’s visit to London in July.

According to a British statement regarding the trip, Starmer’s visit aims to capitalize on the positive momentum generated by the U.K.-India trade deal, providing British enterprises with unparalleled access to one of the globe’s most rapidly expanding economies.

The statement highlighted that with the signing of the pivotal U.K.-India trade deal in July, which will reduce tariffs on British imports to India, the path is now clear for British businesses to dramatically accelerate their engagement with this dynamic market.

The delegation accompanying Prime Minister Starmer includes senior executives from prominent companies like Rolls Royce, British Telecom, Diageo, the London Stock Exchange, and British Airways.

Peter Kyle, the U.K.’s Business and Trade Secretary, remarked, “Our ambition to expand trade with India knows no bounds. In under a year, we’ve progressed from resuming trade discussions to leading 125 exceptional business leaders to India’s bustling commercial hub.”

He further emphasized that “Our agreement stands as the most advantageous deal any nation has ever forged with India, positioning British businesses at the forefront of accessing this vast and continually expanding market. We are actively preparing companies to fully leverage the significant benefits of this deal once it takes effect, aiming to generate growth, employment, and prosperity within the U.K.”

The British statement detailed that India’s average tariff on British goods will decrease substantially, from 15% to just three percent. This reduction will make it considerably simpler for British firms to export a wide range of products, including soft drinks, cosmetics, automobiles, and medical devices, into the Indian market.

Whisky producers, in particular, are set to gain significantly, with tariffs immediately falling from 150% to 75%, and further decreasing to 40% over the next decade. This preferential treatment is expected to give the U.K. a distinct competitive edge globally.

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