Starmer and Modi Meet in Mumbai to Strengthen Trade and Business Relations
On Thursday, Indian Prime Minister Narendra Modi and British Labour leader Keir Starmer held an important bilateral meeting in Mumbai, marking a significant moment in the growing trade and diplomatic relations between the two countries. Starmer’s visit comes as both leaders aim to deepen their commercial ties, which have become increasingly important amid the shifting global economic landscape, including the growing uncertainties surrounding the United States’ trade policies and tariffs.
This meeting is particularly notable as it follows the free trade agreement (FTA) signed earlier this year between the UK and India, a pact that both nations are eager to see implemented quickly. Starmer, in his role as the leader of the UK’s opposition Labour Party, has pushed for swift action to bring the trade agreement into effect, underscoring the importance of trade and investment flows between the two countries.
Bilateral Meeting in Mumbai
The venue for the bilateral talks was Mumbai’s Raj Bhavan, the official residence of Maharashtra’s Governor, where the two leaders were welcomed with cordiality. They greeted each other with handshakes and posed for photographs, signifying a friendly and constructive beginning to their discussions. Following their meeting, it is expected that both Prime Minister Modi and Keir Starmer will issue a joint statement, outlining the progress of their discussions and the way forward for UK-India relations. Later in the day, the two leaders were scheduled to deliver keynote speeches at the Global Fintech Fest, underscoring their commitment to fostering collaboration in emerging sectors like finance and technology.
The Strategic Importance of the UK-India Free Trade Agreement
One of the most pressing items on Starmer’s agenda during this visit has been the free trade agreement (FTA) signed between India and the UK in July. For Starmer, this agreement holds significant potential for bolstering the economic relationship between the two nations. While the deal is still in its early stages, both sides are eager to see it come to fruition. With both countries facing mounting pressures from other global economic forces—particularly US tariffs—there is a strong mutual desire to cement ties through trade agreements that offer economic stability and growth.
Starmer, who traveled to India earlier this week with a delegation of 125 business leaders and cultural figures, has expressed his enthusiasm for the FTA, which is viewed as a crucial step in strengthening economic, business, and diplomatic relations between the two nations. His visit is the first by a British prime minister to India since Theresa May traveled there in the aftermath of the UK’s Brexit referendum in 2016.
This trip, which includes high-profile meetings with Indian business leaders, highlights Starmer’s intention to not only deepen trade relations but also create more job opportunities in both countries. According to Starmer’s office, the deals announced as part of his trip are expected to result in the creation of nearly 7,000 new jobs in the UK. Additionally, 64 Indian companies are committed to investing $1.7 billion in the UK, further cementing the growing economic ties between the two countries.
Corporate Investments and New Opportunities
The economic and business discussions have yielded some promising announcements. Among the top investments expected to be unveiled during this visit is a major deal by Graphcore, a British chip design company owned by SoftBank Group Corp. Graphcore is planning to announce a $1.3 billion investment package in India, which includes the establishment of a new research hub in the country. This investment is seen as a significant step in bolstering India’s growing tech and innovation sectors while also deepening the relationship between the UK and India in the technology space.
In addition to the corporate investments, India’s Commerce Minister, Piyush Goyal, met with the UK’s Business Secretary Peter Kyle on Wednesday to further discuss the implementation of the free trade agreement. Both sides have reaffirmed their commitment to ensuring that the deal is implemented swiftly, with a shared goal of reaping the economic benefits of closer trade ties.
India’s robust economy and fast-growing consumer market make it a natural partner for the UK as both countries seek to diversify their trade relationships in the wake of the UK’s departure from the European Union. As the UK looks for new avenues for growth, India represents a key market for British goods and services.
Fostering Innovation and Technology Cooperation
Keir Starmer’s visit to India has also emphasized innovation and technology as key areas of focus for future collaboration. One notable aspect of Starmer’s trip was his meeting with Nandan Nilekani, the co-founder of Infosys Ltd. and one of the key architects of India’s Unique Identification System (Aadhaar). Nilekani’s work in digital identity and technology infrastructure has made India a leader in the digital space, and Starmer is reportedly seeking advice on how to implement a similar program in the UK.
The focus on technology and innovation highlights the growing role of fintech and digital economy sectors in both nations. Modi and Starmer are set to deliver speeches at the Global Fintech Fest, a testament to the growing importance of financial technology as a driver of economic growth. With both countries looking to harness the potential of digital technologies, this partnership offers numerous opportunities for collaboration in areas such as artificial intelligence, blockchain, and data protection.
Challenges and Tensions Over Migration
While the meeting focused on trade and business, tensions over migration issues are still a point of contention. During his visit, Starmer acknowledged that one area where the UK and India continue to differ is over migration, particularly the movement of skilled workers.
On his flight to Mumbai, Starmer made it clear that he would resist any pressure from UK business leaders to allow more highly skilled workers from India to enter the UK. While businesses have been calling for greater access to skilled labor, Starmer emphasized that immigration was not a part of the free trade agreement, and he would not be swayed on this matter.
Speaking at a football pitch near Mumbai’s Oval Maidan cricket ground on Wednesday, Starmer responded to questions from business leaders and the press, explaining that visa issues were not part of the current discussions. “None of the business leaders had raised the issue of visas,” he said, highlighting that the focus of his visit was on the FTA and its potential for opening up trade and business opportunities. Despite this, he expressed optimism about the strong mood between India and the UK, stressing that even before the full implementation of the FTA, there was already a growing sense of goodwill and mutual benefit between the two nations.
Looking Ahead: Strengthening Ties and Expanding Opportunities
As Prime Minister Modi and Keir Starmer continue their discussions, the future of UK-India relations looks increasingly promising. Both leaders are eager to capitalize on the potential of the free trade agreement, which promises to unlock new opportunities for businesses and workers on both sides. With significant investments being made in the UK by Indian companies and British firms expanding their operations in India, the commercial ties between the two nations are set to deepen.
However, despite the positive momentum, challenges remain—particularly in the areas of migration and ensuring that the benefits of the free trade agreement are equitably shared. While trade deals can create economic growth, addressing the concerns of skilled workers, business leaders, and the public will be essential in maintaining a strong and sustainable relationship moving forward.
As the UK and India work together to implement the free trade agreement, the opportunity for a more diversified and resilient partnership has never been clearer. Both nations must continue to find ways to balance the demands of trade with the evolving social and political realities that shape these relationships. The coming months will reveal whether this burgeoning partnership can continue to thrive in the face of global challenges.
