India on track to become 3rd largest economy, says UK PM Keir Starmer as PM Modi hails 'new energy' in ties

British Prime Minister Keir Starmer, during his first visit to India as the premier, expressed confidence in India's economic growth, stating the country is on track to become the third largest economy by 2028.

Addressing a news conference on Thursday, he asserted that the UK is perfectly placed to be a partner in this journey.

Indian Prime Minister Narendra Modi welcomed his British counterpart, telling him that relations between the two nations had made “significant progress” and his "friend" Starmer's visit "symbolises the new energy" in ties between the nations. The two leaders pledged to unlock "unparalleled" economic opportunities, news agency AFP reported.

India-UK trade deal

This development followed the signing of an India-UK trade deal in London in July. PM Starmer described the trade deal as a “launchpad to boost British leadership in areas ranging from technology to life sciences to renewable energy and more,” PTI reported.

Under the accord, India will slash tariffs on imports of British goods such as whisky, cosmetics and medical devices, while Britain will reduce duties on clothing, footwear and food products, including frozen prawns from India.

PM Modi noted the agreement will “reduce import costs between our two countries, create new employment opportunities for youth, boost trade, and benefit both our industry and consumers,” AFP reported.

Starmer, who was accompanied by a 125-member delegation, emphasised that his visit this week was about “doubling down on the potential of our trade deal for the benefit of all of us” and expected to have secured major new investments, creating thousands of high-skilled jobs for both nations by his departure.

Deepening bilateral cooperation

Beyond trade, the two leaders announced a defence cooperation deal, as well as pushing education ties, including support for the nine British universities opening campuses in India.

India and its former colonial ruler currently share bilateral trade worth around $54.8 billion, with investments supporting more than 600,000 jobs across both countries.

India's GDP surpassed that of Britain's in 2022 to become the world's fifth-largest economy in 2022, according to IMF figures. It is tipped to overtake Japan as the fourth largest later this year.

Discussions on global issues

The prime ministers also discussed global challenges. Starmer said that he and PM Modi discussed the Russia-Ukraine conflict, focusing on the outcome both of the countries want, which centered on ending the conflict, PTI reported.

The British PM also expressed confidence that US President Donald Trump's Israel-Hamas peace plan will bring relief to the hostages, civilian population in Gaza, and the whole world. Starmer called the deal “a real breakthrough,” stating, “This will come as a profound relief for the hostages and their families and civilian population in Gaza, and for the whole world. We will now work with our partners to ensure that this deal is implemented in full and without delay.”