Modi & Starmer Boost India-UK Ties with Investment

Indian Prime Minister Narendra Modi and British Prime Minister Keir Starmer on Thursday celebrated a newly signed trade agreement between their nations as a game-changer for bilateral commerce, coinciding with the announcement of $1.75 billion in Indian investments in the United Kingdom, which is expected to generate thousands of jobs.

During a two-day trip to Mumbai with over 100 UK representatives from business, culture, and academia, Starmer highlighted the deal as offering British companies unique opportunities in India. “This relationship matters more than ever,” he stated at a joint press conference. “We’re creating new opportunities for British businesses in India, opportunities that other countries can’t match.”

The July agreement, effective within a year, reduces tariffs on textiles, whisky, and cars, and expands market access for services. It’s expected to boost trade by £25.5 billion ($34 billion) by 2040, linking the world’s fifth- and sixth-largest economies.

Modi, speaking in Hindi, called the partnership a “launch pad” for stronger ties, highlighting India’s dynamism and the UK’s expertise. Leaders also agreed to establish a connectivity and innovation center, a joint AI hub, and a critical minerals guild to support green tech and supply chains. Additionally, two UK universities plan to open campuses in India to promote educational exchanges.

In defense cooperation, Britain secured a £350 million ($468 million) contract to supply lightweight, multi-role missiles to the Indian Army, as well as a £250 million deal for naval electric propulsion systems, signaling India’s diversification from its traditional Russian suppliers.

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The investments from 64 Indian companies underscore the deal’s immediate impact, with Starmer urging further commitments at a fintech conference: “This is just the start. It’s time to invest in the United Kingdom, invest in this relationship, and invest in our shared future.”