Keir Starmer is embarking on his inaugural trip to India today following the conclusion of a significant trade agreement with Narendra Modi. The Prime Minister will be accompanied by more than 100 UK business leaders and university heads in Mumbai to strengthen relations with India. The treaty, valued at £6 billion for the UK economy, was finalized after a meeting between Mr. Starmer and PM Modi at Chequers estate in Buckinghamshire earlier this year.
PM Modi hailed the deal as a milestone in the shared history of the two nations, dubbing it a “blueprint for our mutual prosperity” following his discussions with King Charles at Sandringham. Starmer emphasized the economic importance of the agreement, comparing it to the impact of Brexit. The accord is expected to reduce tariffs on key UK exports like whisky and gin, cutting rates from 150% to 75% and average tariffs from 15% to 3%.
The trade pact comes three years after former PM Boris Johnson’s unsuccessful attempts to secure a post-Brexit deal with India. India’s ministry of external affairs announced that Modi and Starmer will also attend the Global Fintech conference in Mumbai to enhance the partnership between India and the United Kingdom.
However, Starmer may face inquiries regarding India’s oil trade with Russia amid the ongoing conflict in Ukraine. Recently, the US imposed a 50% tariff on Indian goods, with an additional 25% penalty for dealings with Russia.