UK Prime Minister Keir Starmer Meets PM Modi in Mumbai to Boost Trade
UK Prime Minister Keir Starmer met with Prime Minister Narendra Modi in Mumbai during his first official visit to India. Starmer is leading the UK's largest-ever trade mission to the country to strengthen economic partnerships. A key focus is the UK-India Free Trade Agreement (FTA), signed in July 2024, which aims to boost annual bilateral trade by £25.5 billion. During the visit, Starmer also announced that three major Indian studio films will be shot in the UK.
Unpacked:
The FTA eliminates or reduces tariffs on 90% of UK exports to India and nearly all Indian exports to the UK, covering goods like textiles, electronics, food, and vehicles. Sensitive sectors are excluded. The deal also simplifies customs and improves market access for services and investment, aiming to boost bilateral trade significantly over the coming decade.
UK businesses gain better access to India’s growing market, especially for manufactured goods, food, and services, with lower tariffs and easier customs processes. Indian exporters benefit from near total duty-free access to the UK, increasing competitiveness. Consumers in both countries are expected to see more choices, potentially better prices, and higher product quality due to increased trade and competition.
This signals strengthening cultural and creative industry ties, with potential for increased investment and collaboration between Indian and UK film sectors. Filming in the UK can boost local economies, tourism, and job creation, while enhancing the UK’s profile as a destination for international film production.
Some sectors in both countries are excluded to protect domestic interests, which may limit benefits for certain industries. There are concerns about increased competition impacting local producers and the effectiveness of gradual tariff reductions. Also, implementation and ensuring compliance with new rules of origin and business mobility provisions could pose challenges.