UK PM Starmer arrives in Mumbai with 125-member business delegation
What's the story
United Kingdom Prime Minister Keir Starmer arrived in Mumbai on Wednesday for a two-day visit. He is accompanied by a 125-member business delegation, which includes CEOs and representatives from British institutes, universities, and industry groups. This is the largest ever government trade mission to India. The visit comes after India and the UK signed a trade deal during Indian Prime Minister Narendra Modi's July visit to the UK.
Trade focus
Starmer calls CETA 'launchpad for growth'
The visit is primarily focused on trade and business, with 10 Downing Street calling it a "two-day trade mission to Mumbai." The UK delegation includes Minister for Trade and Business Peter Kyle and Investment Minister Jason Stockwood. Starmer emphasized the importance of the Comprehensive Economic and Trade Agreement (CETA), saying, "It's not just a piece of paper, it's a launchpad for growth."
Discussions and events
Modi, Starmer to address Global Fintech Fest
The visit will also include bilateral discussions on regional and global issues, scheduled for Thursday. According to a statement from the UK government, these talks aim to further strengthen the bilateral relationship through initiatives like a tech partnership under the Technology Security Initiative launched in July 2024. On Thursday, Modi and Starmer will address the Global Fintech Fest in Mumbai and interact with business leaders.
Deal implications
Trade deal to boost exports
Under the trade deal, the UK has removed tariffs on 99% of products. However, this will only affect a small percentage (45% or $6.5 billion) of Indian exports to the UK, according to the Global Trade Initiative. The deal is expected to increase UK exports to India by 60%. Scotch whisky tariffs will also be reduced from 150% to 75% immediately, further decreasing to 40% over 10 years.
Economic backdrop
Labor government facing economic challenges
Starmer's visit comes as the Labour government faces economic challenges in the UK, including low productivity and high national debt. The government has also tightened migration policies, impacting skilled workers from countries like India, pressured partly by anti-migrant policy promises from the Conservatives and the nativist Reform UK Party. The UK India Business Council said that a "balanced and predictable" migration framework that welcomes talent in sectors with high demand would ensure the UK remained a top destination for investment.