UK PM in Mumbai: Keir Starmer calls FTA signed with India in July 'biggest deal since leaving EU'

PM Keir Starmer with a delegation of 125 of the UK`s most prominent business leaders, entrepreneurs, and university vice-chancellors at the Taj Mahal Hotel, in Mumbai. Pic/PTI

British Prime Minister (PM) Keir Starmer, who is on his first official visit to India, met business leaders in Mumbai on Wednesday. During his address in the financial capital, Starmer described the Free Trade Agreement (FTA) signed between India and the United Kingdom (UK) in July as the biggest trade deal signed by the country since its exit from the European Union (EU), news agency ANI reported.

"This is the biggest trade mission that the United Kingdom has ever sent to India," Starmer said during an interaction with industry leaders, adding that his visit is the "return leg" following PM Narendra Modi's earlier trip to the UK this year.

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Following the United Kingdom's exit from the European Union (EU) - known as Brexit - the UK has been actively working to establish new trade relationships beyond the European bloc. The India-UK FTA is seen as a major development in that effort, reducing the UK's reliance on the European market and deepening economic ties with one of the world's fastest-growing economies.

Calling the FTA signed in July this year "hugely important," Starmer remarked, "It's the biggest deal we've struck since we left the European Union. I think it's also the biggest deal that India has ever struck, so it's hugely important."

The landmark trade pact, signed during PM Modi's UK visit, is expected to increase bilateral trade by 25.5 billion pounds annually. It includes significant tariff reductions on goods such as textiles, whisky, and cars - aimed at making exports from both countries more competitive in each other's markets.

Under the agreement, Indian businesses will benefit from improved access to the British market. The UK has offered 99.1 per cent of tariff lines with 100 per cent trade value at zero duty from the moment the deal comes into force.

The FTA is also expected to create thousands of jobs in both India and the UK, especially in key sectors like textiles, leather, footwear, sports goods, and engineering. It aims to not only reduce tariffs but also expand market access and double bilateral trade by 2030.

During his meeting at the Taj Mahal Palace Hotel in Mumbai, PM Starmer also shared a light moment by clicking a selfie with a disposable camera, winning smiles from the audience.

Prime Minister Narendra Modi extended a warm welcome to his British counterpart. In a post on X (formerly Twitter), PM Modi wrote, "Welcome Prime Minister Keir Starmer on your historic first visit to India with the largest ever trade delegation from the UK. Looking forward to our meeting tomorrow for advancing our shared vision of a stronger, mutually prosperous future."

Starmer was received at Mumbai's Chhatrapati Shivaji Maharaj International Airport by Maharashtra Governor Acharya Devvrat, Chief Minister Devendra Fadnavis, and Deputy Chief Ministers Eknath Shinde and Ajit Pawar.

The Ministry of External Affairs also issued a statement saying, "A warm welcome to PM Keir Starmer of the United Kingdom! Received by the Governor of Maharashtra and Gujarat, Acharya Devvrat, at the airport. This is PM Starmer's first visit to India. This visit marks a new chapter in our strong & dynamic India-UK partnership."

(With ANI inputs)