UK and India vow trade growth, but delivery will test the deal

UK and India vow trade growth, but delivery will test the deal

Starmer meets Modi in India’s capital to push delivery. The UK Prime Minister used his largest-ever trade mission to emphasise implementation, pledging £1.3 billion in new investment and promising faster progress on the UK–India trade deal signed in July. Businesses on both sides welcomed the ambition but warned delivery will define success.


UK Prime Minister Keir Starmer is set to meet his Indian counterpart Narendra Modi in New Delhi on Thursday, using the UK’s largest-ever trade mission to signal renewed ambition for growth through closer economic and technology ties. The visit comes just three months after the two countries signed a free trade agreement forecast to boost bilateral commerce by £25.5 billion by 2040.

“This visit is about delivery — making sure that what we’ve agreed translates into real investment, real jobs, and tangible progress,” Starmer said ahead of the meeting, according to Reuters. He added that both governments are “determined to move at the fastest pace humanly possible” in implementing the deal.

The delegation of more than 100 UK companies and organisations is expected to announce £1.3 billion in new Indian investment into the UK. Sectors identified include technology, aerospace, and advanced manufacturing, with a separate initiative on digital and security cooperation also on the agenda.

Modi has described the visit as “a milestone in our partnership,” saying the two sides are “committed to turning new opportunities into shared prosperity.”

The July trade deal — concluded after 18 rounds of negotiation — reduced or eliminated tariffs across key sectors including automotive, alcohol, textiles, and information services. It also expanded mutual access for professional services and outlined cooperation on climate, education, and data protection.

UK business bodies have largely welcomed the agreement. The British Chambers of Commerce called it “a huge boost to our exporters,” while the Confederation of British Industry said it “shows the UK is open for business.” But both have stressed that implementation will determine whether the pact delivers its promised benefits.

Trade advisers note that non-tariff barriers remain significant, from customs procedures to regulatory alignment and digital governance. A report by Grant Thornton UK highlighted that “deals on paper are one thing; movement of capital and people is what converts a pact into growth.”

Starmer has ruled out any immediate visa arrangement as part of the visit, saying the FTA “is not about visas” and emphasising that mobility issues will be handled separately. Some analysts see that as a missed opportunity for the technology and services sectors, where talent exchange underpins expansion.

In Mumbai, Starmer is also due to review India’s digital identity infrastructure, Aadhaar, citing its scale and integration but noting differences in data protection and privacy frameworks. The move signals growing interest in digital public infrastructure as part of the UK’s own modernisation agenda.

Business optimism on both sides remains high. The Confederation of Indian Industry has described the FTA as “a defining moment” and pointed to prospects in advanced manufacturing and clean energy. Yet for many companies, especially small exporters, the challenge now lies in translating government promises into operational gains.

As the trade mission unfolds, attention will turn to how quickly regulatory frameworks are harmonised and early-stage investments materialise. The deal may mark a diplomatic milestone — but for business, the verdict will depend on delivery.


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