UK PM Keir Starmer's India Visit 2025: Enhancing Bilateral Trade, Defence, and Innovation Under Landmark FTA Framework

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UK Prime Minister Keir Starmer arrived in Mumbai on October 8, 2025, for a two-day official visit, marking his first trip to India since taking office in July 2024. This reciprocal engagement follows Prime Minister Narendra Modi's visit to the UK in July 2025, where the two nations signed the India-UK Free Trade Agreement (FTA) and Comprehensive Economic and Trade Agreement (CETA). Accompanied by a delegation of over 125 business leaders, entrepreneurs, university vice-chancellors, and industry representatives from organizations like Rolls-Royce, British Telecom, Diageo, London Stock Exchange, and British Airways, the visit aims to implement the FTA, boost trade and investments, and deepen cooperation in technology, defence, education, and culture. Starmer and Modi will hold bilateral talks, address the Global Fintech Fest, and review the India-UK Vision 2035 roadmap, emphasizing reliable partnerships amid global uncertainties like US tariffs under President Donald Trump and ongoing geopolitical tensions.

Key Points

1. The India-UK FTA, signed in July 2025, integrates the world's 5th and 6th largest economies, with bilateral trade in goods and services at approximately USD 56 billion (or £44.1 billion for the year ending March 31, 2025), including goods at £18 billion and services at £25 billion, projected to double to USD 112 billion by 2030.
2. The agreement offers duty-free access to 99% of Indian exports by value to the UK, benefiting sectors like textiles, leather, footwear, sports goods, toys, gems and jewellery, engineering goods, auto parts, engines, and marine products, while supporting MSMEs and creating high-skill jobs in IT, financial services, and education.
3. Tariffs on UK exports like Scotch whisky will reduce from 150% to 75% immediately and to 40% over 10 years, enabling UK exports to India to increase by 60%, adding £4.8 billion annually to UK GDP (about 0.13% growth) in the long term, with India's average tariff on British products dropping from 15% to 3%.
4. Defence cooperation features a new Industrial Roadmap for co-design, co-development, and co-production of defence products, including jet engines, joint military exercises, port calls, technology sharing, and subject matter expert exchanges, aligning with India's Make in India initiative.
5. Education ties include over 170,000 Indian students in the UK, with UK universities like the University of Southampton establishing a campus in Gurugram (first under India's New Education Policy), Queen's University Belfast and University of Surrey at GIFT City in Gujarat, and a 2022 MoU for mutual recognition of qualifications.
6. Scholarships such as Chevening and the Young Professionals Scheme allow 3,000 young professionals from each country to live and work in the other for up to two years, while the Double Contributions Convention provides a three-year exemption from UK social security for over 75,000 eligible Indian workers.
7. Research and innovation partnerships, valued at £300-400 million, are guided by the biennial India-UK Science and Innovation Council, with a 2023 MoU expanding cooperation in quantum technology, clean energy, AI, machine learning, and pandemic preparedness, plus a new Net Zero Innovation Virtual Centre for industrial decarbonisation via green hydrogen.
8. Cultural collaborations involve an updated film co-production framework for accessing incentives in both markets, creating jobs in crews, VFX, post-production, and supporting creative industries through festivals, cross-border projects, and opportunities for artists and technicians.
9. Connectivity improvements include new Indian consulates in Manchester and Belfast (opened in March 2025) for enhanced consular services, and increased flights like Virgin Atlantic's daily London-Bengaluru route (from March 2024), British Airways' additional Delhi-London flight (from April 2025), IndiGo's Delhi-Manchester service (starting November 15, 2025), and Air India's operations from multiple Indian cities.
10. The Indian diaspora, making up 2.6% of the UK population, owns over 65,000 companies, drives job creation and economic contributions, serving as a "living bridge"; however, challenges persist in migration policies (India leads in UK skilled worker visas with over 250,000 in 2023), extradition of fugitives like Vijay Mallya and Nirav Modi, security concerns over Khalistani separatists, and differing views on Russia's invasion of Ukraine.

Explained

What is the historical background of India-UK bilateral relations?

Historical Roots: India and the UK share a complex history stemming from nearly 200 years of British colonial rule over India, ending with India's independence in 1947, which shaped early ties through shared institutions like democracy, English language, and legal systems.

Post-Independence Evolution: After 1947, relations transitioned from colonial legacy to a modern partnership, with the UK supporting India's development through aid and trade, though tensions arose over issues like Kashmir and Cold War alignments where India pursued non-alignment.

Post-Brexit Shift: Following the UK's exit from the European Union in 2020, ties strengthened as the UK sought new global partnerships, viewing India as a key Indo-Pacific ally and gateway to Asia, while India saw opportunities in UK technology and markets under initiatives like Atmanirbhar Bharat.

Elevation to Strategic Partnership: In 2021, the relationship was upgraded to a Comprehensive Strategic Partnership with the 2030 Roadmap, focusing on trade, defence, migration, and climate, now extended to Vision 2035 signed in July 2025 for a 10-year plan emphasizing growth, education, technology, defence, and security.

What is the India-UK Free Trade Agreement (FTA) and its key features?

Definition and Signing: The FTA is a comprehensive trade deal signed in July 2025 during PM Modi's UK visit, marking India's most detailed agreement and the UK's largest post-Brexit pact, after negotiations started in 2022 under former UK PM Boris Johnson and concluded under Starmer's Labour government, showing bipartisan support.

Trade Impact: It reduces tariffs to boost bilateral trade from USD 56 billion in 2024 (India exporting USD 26 billion, importing USD 17 billion) to double by 2030, with duty-free access for 99% of Indian exports by value, impacting 45% (USD 6.5 billion) of current exports positively.

Sector-Specific Benefits: For India, it enhances market access in textiles, leather, auto parts, and marine products; for the UK, tariffs on whisky drop from 150% to 75% immediately and 40% over 10 years, while overall, it lowers India's average tariff on UK goods from 15% to 3%, aiding sectors like cars, cosmetics, medical devices, and soft drinks.

Additional Elements: Includes the Double Contributions Convention for social security exemptions benefiting 75,000 Indian workers, and supports MSMEs, job creation in IT and finance, with projections of 60% rise in UK exports to India adding £4.8 billion to UK GDP annually.

What are the details of UK PM Keir Starmer's visit to India in October 2025?

Visit Schedule: Starmer arrived in Mumbai on October 8, 2025, for a two-day trip, received by Maharashtra officials; Day 1 includes a tour of Yash Raj Films studios for film collaboration and a football event with the English Premier League at Cooperage Ground; Day 2 features bilateral talks with PM Modi, meetings with business leaders, and keynote addresses at the Global Fintech Fest.

Delegation Composition: Over 125 members, including ministers, CEOs from Rolls-Royce, British Telecom, Diageo, HSBC, Barclays, NatWest, Standard Chartered, Arup, BT, and university representatives, to promote trade and investments.

Objectives: To implement the FTA, discuss Vision 2035, enhance economic security, and address regional issues like Indo-Pacific stability, amid global challenges like US tariffs and the Russia-Ukraine conflict.

Significance: As Starmer's first India visit, it reinforces Labour's commitment to Indo-Pacific ties post-Brexit, highlighting the "living bridge" of the Indian diaspora.

What are the main areas of cooperation between India and the UK under Vision 2035?

Economic Growth and Jobs: Focus on doubling trade by 2030 through FTA implementation, supporting over 650,000 jobs in each country via cross-investments, with emphasis on MSMEs and sectors like fintech and manufacturing.

Defence and Security: Shift to joint innovation via Defence Industrial Roadmap, including jet engine co-production, military exercises like Konkan, technology transfers, and addressing threats like terrorism and cyberattacks.

Education and Skills: Pathways for 170,000 Indian students, campus setups in India, mutual degree recognition, Chevening scholarships, and Young Professionals Scheme for 3,000 exchanges annually.

Research and Innovation: £300-400 million joint programs in AI, quantum tech, clean energy, and health; Net Zero Centre for green hydrogen; biennial Science and Innovation Council meetings.

Culture and Connectivity: Film co-production for job creation in creative industries; new consulates in Manchester and Belfast; expanded flights for easier travel.

Climate and Health: Collaboration on net-zero goals (India by 2070, UK by 2050) and pandemic preparedness.

What challenges exist in India-UK relations and how are they being addressed?

Migration and Visas: UK restrictive policies limit Indian skilled workers despite India leading with 250,000 visas in 2023; FTA eases some professional mobility, but no new visa spots announced, with focus on temporary assignments.

Security Concerns: India raises issues over Khalistani separatists in the UK, including 2023 High Commission vandalism; UK commits to action for trust-building.

Extradition Issues: Delays in cases like Vijay Mallya and Nirav Modi for financial crimes; visit may push for faster cooperation.

Geopolitical Differences: India's strategic autonomy and ties with Russia (35% oil imports, 55% arms) contrast UK's anti-Russia stance on Ukraine; both seek balanced coalitions.

Trade Barriers: Remaining high tariffs and non-tariff standards; FTA addresses most but legal services access unresolved; implementation focus during visit.

What are the future prospects and global implications of strengthened India-UK ties?

Economic Diversification: Helps India diversify trade beyond US (USD 190 billion) and China (USD 136 billion), aiming for USD 2 trillion exports by 2030, while UK offsets EU losses post-Brexit.

Strategic Resilience: Positions both as stable partners amid US protectionism and Russia-Ukraine war, enhancing Indo-Pacific security.

Model for Other Deals: Serves as a template for India's negotiations with EU or Canada, promoting resilient supply chains.

Mutual Benefits: Boosts jobs, innovation, and cultural exchanges, with India's growth (third-largest economy by 2028) offering UK opportunities in a multipolar world.

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