UK Prime Minister Keir Starmer Visits India to Bolster Post-FTA Trade
UK Prime Minister Keir Starmer arrived in Mumbai for his first official visit to India, aimed at capitalizing on the landmark Free Trade Agreement signed in July. Accompanied by a 125-member business delegation, Starmer will meet with Prime Minister Narendra Modi to discuss expanding bilateral ties. The visit seeks to "turbocharge" trade, with the FTA expected to cut tariffs, increase market access for British goods, and help achieve the goal of doubling bilateral trade by 2030.
Unpacked:
Key beneficiaries include advanced manufacturing, medical technology, clean energy, food and drink (such as whisky, gin, salmon, chocolate), cosmetics, and automotive sectors. UK car manufacturers and agri-food exporters gain from significant tariff reductions, while Indian exports like textiles, gems, and engineering goods also receive near-complete duty-free access to the UK market.
Consumers in the UK will have access to a broader range of affordable Indian products, including apparel, shrimp, and jewelry. Indian consumers will see lower prices on British goods such as whisky, cars, and cosmetics. Increased competition and choice are expected in both markets, potentially boosting quality and affordability.
Sensitive sectors are excluded or receive gradual tariff reductions. India has protected areas like dairy, cereals, certain essential oils, and gold, while the UK has excluded sugar, pork, chicken, and eggs. Some products face staged tariff reductions over up to 10 years to protect domestic industries.
After signing, both countries must ratify the agreement through their respective legislative processes. Only after ratification will the provisions, such as tariff cuts, take effect. UK officials have expressed a desire for rapid implementation, but the exact date depends on parliamentary approval in both countries.