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10 October 2025

Modi And Starmer Forge Historic UK India Trade Pact

A sweeping trade deal, new defense contracts, and university partnerships mark a new era in UK-India relations as leaders aim to double trade and deepen strategic ties.

British Prime Minister Keir Starmer and his Indian counterpart Narendra Modi met in Mumbai on October 9, 2025, marking a pivotal moment in the evolving relationship between the United Kingdom and India. The meeting, which concluded Starmer’s first official visit to India since taking office in July 2024, was more than a diplomatic formality—it was a showcase of ambition, economic vision, and a shared desire to shape the future of global trade and cooperation.

The two-day visit, which began on October 8, saw Starmer accompanied by a formidable 125-member delegation. This group, the largest-ever UK trade mission to India, included business leaders, university vice-chancellors, and cultural figures, all eager to tap into opportunities in what is now the world’s fifth-largest economy. According to the Associated Press, the talks focused on deepening cooperation in trade, defense, and technology, with both leaders touting the transformative potential of a landmark trade deal signed in July 2025.

At a press conference, Starmer described the agreement as a “launchpad” for closer ties, calling it “the most ambitious trade deal India has ever done.” He emphasized, “We are creating a new, modern partnership focusing on the future.” Modi echoed these sentiments, stating, “India-U.K. partnership is becoming a crucial foundation for global stability and economic progress,” and lauding the partnership as “an example of stability in an uncertain world.”

The numbers behind the rhetoric are impressive. The UK government estimates that the deal will raise bilateral trade by $34 billion and increase exports to India by nearly 60%. In the three months since the agreement was signed, Starmer told business leaders at the India-UK CEO Forum, “we’ve seen a 6-billion-pound boost in trade and investment, that’s on top of the increased numbers over the last year already.” For context, bilateral trade between the two countries currently stands at around $54.8 billion, supporting more than 600,000 jobs across both economies, as reported by DW.

The deal itself is designed to be mutually beneficial. For British exporters, tariffs will be slashed on products such as Scotch whisky, English gin, cosmetics, medical devices, and luxury cars. In return, India will see reduced duties on its clothing, footwear, jewelry, frozen seafood, food products, and spices shipped to the UK. Starmer highlighted these changes, noting, “We’re opening up new opportunities in India for British businesses, opportunities that other countries simply do not have. It has given us a unique edge.”

But the partnership isn’t just about goods crossing borders. It’s about knowledge and innovation, too. An agreement was reached for nine UK universities to open campuses in India, with the University of Lancaster and the University of Surrey among the first to receive approval. Starmer announced, “I’m delighted that more Indian students will be able to benefit from a world-class British education in the near future – strengthening the ties between our two countries while pumping millions back into our economy and supporting jobs at home.” The government estimates these new campuses will bring a £50 million boost to the UK economy.

The two countries also inked a significant defense deal. According to the British defense ministry, the UK will supply missiles, launchers, and electric-powered engines for Indian naval ships. A 350 million pound ($465 million) contract for lightweight multi-role missiles and a 250 million pound ($332 million) deal for electric-powered ship engines were announced, signaling a deepening of military ties. An agreement on military training cooperation was also reached, a move Modi said would further cement the security partnership.

Innovation and sustainability are front and center in this new era of cooperation. The Indian Ministry of External Affairs revealed plans for a connectivity and innovation centre, a joint centre for artificial intelligence, and the creation of a critical minerals industry guild to bolster supply chains and promote green technologies. These initiatives, as outlined by Al Jazeera, are expected to position both countries as leaders in the global transition to greener economies.

Investment is flowing in both directions. Starmer’s office announced that 64 Indian companies have committed to investing 1.3 billion pounds ($1.73 billion) in the UK. The British government claims that the yet-to-be-implemented trade deal has already resulted in £1 billion of investment and nearly 7,000 jobs being created in the UK—evidence, they say, that the partnership is already bearing fruit.

Of course, the relationship isn’t without its complexities. India’s continued purchase of Russian oil, despite Western sanctions, remains a point of contention. Starmer confirmed he raised the issue with Modi, stating, “Yes, we did discuss that this morning with President Modi, and we each went through the steps we’re taking to bring about a resolution of the conflict.” Modi, for his part, has maintained that India’s energy policy is driven by national interest and economic security. External Affairs Ministry spokesperson Randhir Jaiswal previously noted, “Like any major economy, India will take all necessary measures to safeguard its national interests and economic security.” He also pointed out, “In fact, India began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict.”

The two leaders also discussed the ongoing war in Ukraine and developments in Gaza. Starmer praised the first stage of a peace plan between Israel and Hamas, saying it brings “profound relief,” especially for hostages and civilians who have suffered over the past two years. Modi, while describing himself as a friend of Putin, has indicated a desire for the Ukraine war to end through “dialogue and diplomacy.”

Starmer did not shy away from raising human rights concerns, including the case of Jagtar Singh Johal, a British Sikh activist held in India for seven years without conviction. He also met with Nandan Nilekani, founder of India’s digital ID system, as the UK prepares to introduce a compulsory digital ID for workers—a policy that’s sparked debate back home.

The visit was not without its pageantry. Mumbai’s streets were lined with giant banners of both leaders, and the atmosphere was one of optimism and anticipation. As India is set to overtake Japan as the world’s fourth-largest economy later this year, and the UK remains the sixth largest, the stakes—and the opportunities—could hardly be higher.

Looking ahead, both sides are betting that this partnership, built on trade, innovation, and shared democratic values, will serve as a stabilizing force in a turbulent world. Only time will tell if these ambitions are realized, but for now, the mood in Mumbai is unmistakably upbeat—and the world is watching.