British Prime Minister Keir Starmer will welcome Indian Prime Minister Narendra Modi on Thursday to formalize a major UK-India trade agreement projected to elevate bilateral trade by $33 billion each year. The announcement, released by the British High Commission, calls this deal a major turning point that will not only bolster both economies but also generate thousands of jobs.
The two leaders will jointly present the “UK-India Vision 2035,” a forward-looking strategy that redefines the countries’ partnership in today’s dynamic global climate. The agreement, described as the most expansive India has ever signed, is also considered the UK’s most consequential bilateral deal since exiting the European Union.
The comprehensive deal aims to enhance market access, making goods and services more affordable and accessible. Indian consumers can expect better pricing on British exports—ranging from cosmetics and beverages to automobiles and medical tools—as average import tariffs will plunge from 15% to 3%. Likewise, British buyers will benefit from streamlined import costs on Indian goods.
Beyond trade, the UK-India Vision 2035 highlights expanded defense ties, with a new Defence Industrial roadmap, collaboration on technology and innovation, border security cooperation, climate action, and educational partnerships. A year after the launch of the UK-India Technology Security Initiative, both governments plan to push ahead with advanced technology efforts that will further boost national security and shape future innovations.
British Prime Minister Starmer labeled the trade deal a “major win” for the UK, praising its job creation potential and promise of economic upliftment. He added that it contributes to his administration’s broader goal of raising living standards and easing the cost-of-living pressures for UK families.
Jonathan Reynolds, the UK’s Secretary of Business and Trade, called India a rising global powerhouse and one of the fastest-growing economies today. The deal opens fresh opportunities for British companies, with 26 firms—including Airbus and Rolls-Royce—already announcing new business ventures in India worth over $6 million.
The agreement also grants UK clean energy firms unparalleled access to India’s growing renewable energy market. In the financial sector, UK service providers will now enjoy secure and equal footing in India, thanks to clarified investment rules, especially in insurance.
As part of the revitalized relationship, both nations will intensify joint efforts in combating serious financial crimes, corruption, and illegal migration through enhanced intelligence sharing.
PM Modi’s arrival in London was met with an enthusiastic welcome from the Indian diaspora, highlighting the cultural and emotional connection between the two countries.
