Prime Minister Keir Starmer praised Britain’s “unique bonds” with India as he and his Indian counterpart Narendra Modi formally signed a recently announced UK-India trade deal during talks on Thursday.
India and Britain’s trade deal is expected to create both business and employment opportunities – Reuters
Starmer hailed the agreement as a “landmark moment” for both countries as he hosted India’s leader at his Chequers country estate, northwest of London.
“This is not the extent or the limit of our collaboration with India,” added the British premier, whose year-old government is struggling to fire up an economy weakened by years of stagnant growth and high inflation.
“We have unique bonds of history, of family and of culture and we want to strengthen our relationship further, so that it is even more ambitious, modern and focused on the long term,” he said.
Starmer and Modi announced in May they had struck a free trade agreement that the British government says will eventually add 4.8 billion pounds (6.5 billion dollars) a year to the UK economy.
The UK and India hope the accord will boost trade between the two countries by 25.5 billion pounds, as well as bolstering the British economy and wages. Modi, standing alongside Starmer during a media appearance, described the deal as a “blueprint for our shared prosperity”.
Britain and India are the sixth and fifth largest global economies respectively, with a trade relationship worth around 41 billion pounds and investment supporting more than 600,000 jobs across both countries.
The accord slashes tariffs on imports of UK goods into India, including cosmetics, whisky, and medical devices. In return, the United Kingdom will cut tariffs on clothes, footwear, and food products.
Starmer and Modi have met twice recently, at the G7 summit in Canada last month and at the G20 meeting in Brazil last year. Modi was also due to see King Charles III during his brief stay in Britain, his fourth visit since becoming India’s leader in 2014.
