NextFin news, British Prime Minister Keir Starmer arrived in Mumbai, India, on Wednesday, October 8, 2025, to lead a two-day trade mission aimed at capitalizing on the growth opportunities created by the India-UK Comprehensive Economic and Trade Agreement (CETA) signed in July 2025.
Accompanied by a delegation of 125 prominent UK business leaders, cultural figures, and university representatives, Starmer emphasized the free trade agreement as a "launchpad for growth" that will significantly boost bilateral trade and economic ties between the two countries.
The trade deal, described by Starmer as the best ever secured by any country with India, is projected to increase the UK’s GDP by £4.8 billion annually and add £2.2 billion to wages across the UK. It is expected to raise bilateral trade by £25.5 billion per year, with UK exports to India forecasted to grow by nearly 60%.
Starmer highlighted that the agreement lowers India’s average tariff on UK products from 15% to 3%, benefiting sectors including soft drinks, cosmetics, cars, medical devices, and notably Scotch whisky, whose tariffs have been reduced from 150% to 75% immediately, and will further drop to 40% over the next decade.
The Prime Minister stressed the importance of implementing the deal swiftly and urged UK businesses to seize the opportunities it presents. He stated, "Our job is to make it easier for you to seize the opportunities. On the plane home, I want each of you to tell me what you got out of this trip – a deal, a contact. This is a wonderful opportunity. Let’s go out and seize it."
The visit also includes discussions with Indian Prime Minister Narendra Modi to strengthen economic, educational, and technological partnerships. The UK delegation includes 14 university vice chancellors, reflecting the growing demand for higher education in India, and representatives from major UK cultural institutions to foster creative and digital collaborations.
Starmer addressed questions about visa policy changes, clarifying that no new visa relaxations are planned as part of the trade agreement implementation. "We’re here now to take advantage of the free trade agreement that we’ve already struck," he said.
Additionally, the visit is expected to cover broader diplomatic issues, including India’s relationship with Russia, as Modi recently sent birthday wishes to Russian President Vladimir Putin, a point of potential tension given the UK’s stance on Russia’s actions in Ukraine.
British Airways and Manchester Airport announced expansions in flight services between the UK and India, signaling increased connectivity to support growing trade and tourism. British Airways plans a third daily flight between Delhi and London Heathrow in 2026, while Manchester Airport will add a new direct route to Delhi operated by IndiGo.
Business and Trade Secretary Peter Kyle described the trade deal as placing British businesses "at the front of the queue to access a huge and ever-growing market," emphasizing the government’s commitment to supporting companies of all sizes, including SMEs, to benefit from the agreement.
The trade mission marks the largest UK government delegation ever sent to India, underscoring the strategic importance of the India-UK economic partnership as India is projected to become the world’s third-largest economy by 2028.
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