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BRITISH Prime Minister Sir Keir Starmer and his Indian counterpart Narendra Modi are set to formalise a major trade and investment agreement, estimated to bring £6 billion in economic value to the UK, in what officials describe as the most significant deal of its kind in terms of impact on Britain.
Ahead of their meeting on Thursday, the two leaders also agreed to strengthen bilateral cooperation on tackling organised crime and illegal migration, including plans to share criminal records and intelligence.
The deal will see import tariffs on a range of British goods slashed from an average of 15 per cent to around 3 per cent, boosting UK exports to India, which currently stand at approximately £11 billion annually.
Whisky duties are set to be halved initially, with reductions continuing in subsequent years. Other sectors—including soft drinks, cosmetics, and automotive—will also benefit from reduced trade barriers.
“Our landmark trade deal with India is a major win for Britain,” PA Media/dpa news reported Starmer saying. “It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change.
“We’re putting more money in the pockets of hardworking Brits and helping families with the cost of living, and we’re determined to go further and faster to grow the economy and raise living standards across the UK.”
The government says the agreement will result in the creation of at least 2,200 jobs across the UK, alongside investment commitments from both British and Indian businesses worth nearly £6 billion.
Business Secretary Jonathan Reynolds noted that the benefits would be spread nationwide: “The almost £6 billion in new investment and export wins announced today will deliver thousands of jobs and shows the strength of our partnership with India as we ensure the UK is the best place in the world to invest and do business.”
The deal, however, falls short of full UK access to India’s legal and financial services sectors. Chancellor Rachel Reeves is said to have made a strong push for greater liberalisation, though discussions on a bilateral investment treaty remain ongoing.
Trade talks originally began under former Conservative Prime Minister Boris Johnson in 2022, with negotiations concluded in May 2025.
The Labour government has hailed the deal, alongside potential agreements with the United States and the European Union, as proof of a pragmatic and globally engaged approach to trade.
The Confederation of British Industry welcomed the agreement, calling it “a springboard for long-term partnership and prosperity.”
CBI chief executive Rain Newton-Smith said: “A trade agreement with India – one of the world’s fastest-growing economies – is a springboard for long-term partnership and prosperity. UK firms can take advantage of this new platform to scale, diversify and compete on the global stage.”
However, Shadow Business Secretary Andrew Griffith criticised Labour’s economic plans, claiming: “Any trade deal that can successfully cut regulation which stops Britain’s makers from creating new jobs and wealth will be a step in the right direction.
“But the irony should not be lost on anyone that any gains from this trade deal will be blown out of the water by Angela Rayner’s union charter, stifling business with red tape, the jobs tax and, come autumn, Rachel Reeves’ inevitable tax hikes.”
The agreement also comes amid ongoing discussions over the UK’s proposed carbon border tax, which India has expressed concerns over, fearing it could unfairly affect its exports. - July 24, 2025
UK-India trade, Keir Starmer, Narendra Modi, free trade agreement, UK economy, Brexit, international investment. - July 24, 2025