By Alistair Smout
MUMBAI (Reuters) – Indian Prime Minister Narendra Modi and his British counterpart Keir Starmer on Thursday praised the potential of their months-long trade deal to transform trade ties, as London unveiled more Indian investments in Britain.
Starmer is in the financial capital of Mumbai on a two-day visit to India, along with more than a hundred leaders from the business, cultural and university sectors, as he races to reap the trade agreement signed in July.
The deal agreed to reduce tariffs on goods from textiles to whiskey and cars, and allow greater market access for companies in the world’s fifth and sixth largest economies, aiming to boost two-way trade by another 25.5 billion pounds ($34 billion) by 2040.
Starmer’s visit, accompanied by the largest business delegation in history, “reflects the new energy and broad vision” of the partnership, Modi said after talks with the British prime minister.
“India’s dynamism and the UK’s expertise together create a unique synergy,” Modi said, speaking in Hindi.
“Our partnership is built on trust…it is a clear reaffirmation of our shared commitment to…building a better future for the people of our two nations.”
Starmer said the goal of his visit was to double the potential of the trade deal, which is expected to come into force within a year.
“When we leave India tonight, I hope we will have secured significant new investments that will create thousands of highly skilled jobs in the sectors of the future.”
Starmer also backed New Delhi’s long-standing desire to become a member of the United Nations Security Council, saying India should take its rightful place there.
The leaders gave few details, but mentioned cooperation in technology, education, defense and security, artificial intelligence and advanced communications as areas of special focus.
Earlier, Starmer’s office said 64 Indian companies would collectively invest 1.3 billion pounds ($1.75 billion) in Britain, without giving further details.
Both leaders will participate in a financial technology conference on Thursday before Starmer flies home.
Trade ministers from both countries agreed in a meeting on Wednesday to work more closely in sectors such as advanced manufacturing, digital trade, clean energy and services, India’s commerce ministry said in a summary.
But they don’t agree on everything.
After Modi wished Russian President Vladimir Putin a happy birthday on Tuesday, Starmer joked to reporters that he would not do the same, given Britain’s strong backing of Ukraine and Russia’s condemnation of its invasion.
Britain says it respects India’s strategic independence and Scottish Secretary Douglas Alexander, a former trade minister who joined the delegation, told reporters the issue had not stopped Starmer from taking advantage of close ties with Modi to grow the UK economy.
($1=0.7444 pounds)
(Reporting by Alistair Smout in Mumbai, Manoj Kumar and Sakshi Dayal in New Delhi; writing by YP Rajesh; editing by Clarence Fernandez)