Ziraat Times Team Report
London/New Delhi:
In a significant moment for global diplomacy and economic cooperation, UK Prime Minister Sir Keir Starmer hosted Indian Prime Minister Narendra Modi in London today to sign a landmark UK-India trade agreement and unveil an ambitious new roadmap for bilateral relations — The UK-India Vision 2035.
Touted as the most comprehensive trade deal India has ever signed, and the UK’s most economically significant bilateral agreement since Brexit, the deal is forecast to boost bilateral trade by £25.5 billion annually. It marks a transformative step in deepening trade, investment, and strategic collaboration between two of the world’s fastest-growing economies.
The leaders’ joint announcement comes amid rising global economic and geopolitical uncertainty, and aims to usher in a new decade of cooperation encompassing trade, defence, clean energy, education, and frontier technology.
Prime Minister Keir Starmer hailed the agreement as a “major win for Britain”, saying:
“It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change. We’re putting more money in the pockets of hardworking Brits and helping families with the cost of living.”
Prime Minister Modi, in his remarks, described the deal as a “historic moment in UK-India relations”, underlining the shared vision of the two nations to forge ahead as equal partners in innovation, security, and inclusive growth.
The new trade agreement promises sweeping benefits for businesses and consumers across both nations. For India, the UK market opens up in unprecedented ways. For Britain, it means cheaper imports, expanded exports, and new jobs in sectors from aerospace to renewable energy.
According to the UK’s Department for Business and Trade, Indian consumers will gain access to British products like soft drinks, cosmetics, automobiles, and medical equipment at significantly reduced tariffs — dropping from an average of 15% to just 3%. Conversely, UK consumers and businesses will see a surge in Indian exports becoming more affordable and accessible.
Business and Trade Secretary Jonathan Reynolds called the deal “historic” and stated:
“India is one of the fastest-growing global economies and an emerging economic superpower. This trade deal puts the UK in the best position to partner with India over the next decade, promising to unlock thousands of jobs and boost growth across both economies.”
He also announced nearly £6 billion in new investments and export deals, including new ventures by 26 British companies in India. Aerospace giants Airbus and Rolls-Royce are set to deliver aircraft and engines to Indian airlines, part of contracts valued around £5 billion.
The strategic partnership extends beyond trade. The UK-India Vision 2035 outlines shared goals for the coming decade, including:
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A new Defence Industrial Roadmap to strengthen defence cooperation and technology sharing.
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Deepened collaboration on climate change and clean energy, including UK access to India’s growing renewable energy procurement market.
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Expanded cooperation in financial services, with provisions to bind India’s foreign investment cap in the insurance sector and ensure equal treatment for UK firms.
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Strengthened cooperation in tackling corruption, serious fraud, organised crime, and irregular migration, with greater intelligence sharing and operational collaboration.
