British Prime Minister Keir Starmer and Indian Prime Minister Narendra Modi hailed their countries’ recent trade deal as transformative and said the partnership was already starting to bear fruit.
Britain and India signed a trade deal in July that aims to cut tariffs on items ranging from textiles to whisky, cars and spices and give companies greater market access. The stated goal is to increase trade by an additional £25.5 billion ($34 billion) by 2040.
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Prime Minister Starmer met with Prime Minister Modi in Mumbai on Thursday. In Mumbai, the British Prime Minister and more than 100 leaders from Britain’s business, culture and university sectors were completing a two-day trade mission to India.
“In the three months since we actually signed[the trade deal]we’ve increased trade and investment by £6 billion. This is on top of the increase already last year,” Starmer told business leaders from both countries at the India-UK CEO Forum in Mumbai.
The two countries are seeking to recalibrate their trade relationship in the wake of tariffs imposed by President Donald Trump’s administration.
In August, the United States imposed a 50% tariff on goods from India in response to New Delhi’s trade with Russia, particularly imports of Russian crude oil, while the United Kingdom, which signed a trade deal with the United States in May, is also affected by the tariffs, albeit at a much lower rate.
Prime Minister Modi said at a forum on Thursday that he was confident that trade between the two countries would double from the current $56 billion by the target.
After speaking with the British prime minister, Modi said Starmer’s visit “reflects new energy and a broader vision” in the partnership.
“India’s dynamism and British expertise come together to create a unique synergy,” PM Modi said in Hindi.
Mr Starmer said the focus of the trip was to double the chances of a trade deal expected to come into force within a year.
“This is just the beginning,” Starmer later told a fintech conference. “It’s time to invest in Britain, invest in this relationship and invest in our common future.”
According to a statement from India’s Ministry of External Affairs, the two countries agreed to establish a Connectivity and Innovation Center and a joint AI Center, and announced a Critical Minerals Industry Guild to strengthen supply chains and promote green technologies.
Earlier, Starmer’s office announced that 64 Indian companies would invest a total of 1.3 billion pounds ($1.73 billion) in the UK, without giving details.
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Despite the good faith shown in Mumbai, the two countries remain out of sync on several key issues, including the Russia-Ukraine war.
On Tuesday, after PM Modi wished Russian President Vladimir Putin a happy birthday, Starmer joked to reporters that he would not do the same, given Britain’s strong support for Ukraine and Russia’s condemnation of Russian aggression.
Asked whether he had raised concerns about India’s purchase of Russian oil with Modi, Starmer said the two countries were talking about it, and in particular looking at ways to end the Russia-Ukraine war, which he said was “an outcome that we both want”.
Britain respects India’s strategic independence and said it can work together even when countries have different views on certain issues.
In an early sign of that strategy and a move towards closer defense ties, Britain announced it had signed a £350 million ($465 million) contract to supply the Indian military with light multi-role missiles made in Northern Ireland, and that the next phase of the deal, initially worth £250 million ($332 million), would include cooperation on electric engines for naval ships.
India has relied on Moscow for much of its military supplies for decades. And Western sanctions imposed on Russia since the invasion of Ukraine have pushed the country to deepen its trade partnership with India.
In August, India hit back at the United States and the European Union over sanctions, tariffs and threats they faced over its purchases of Russian oil during the war against Ukraine.
“Like other major economies, India will take all necessary steps to protect its national interests and economic security,” External Affairs Ministry Spokesperson Randhir Jaiswal said at the time.
However, Jaiswal also directly refuted suggestions from the US and EU that India had broken with the West’s own actions by purchasing large amounts of Russian crude oil.
Referring to Russia’s full-scale invasion of Ukraine in February 2022, Jaiswal said, “In fact, India started importing from Russia after the conflict broke out as traditional goods were diverted to Europe.”
“At that time, the United States actively encouraged these imports by India to strengthen the stability of global energy markets,” he added.
