British Prime Minister Keir Starmer began his first official visit to India on Wednesday, leading a delegation of over a hundred business, cultural, and academic leaders. The two-day visit aims to deepen the India–UK partnership following the signing of the Free Trade Agreement (FTA) earlier this year.
The recently concluded FTA, signed in July during Prime Minister Narendra Modi’s visit to London, marks a new chapter in bilateral relations. The deal, which took three years of negotiations to finalise, will reduce tariffs on goods such as textiles, whisky, and automobiles, while expanding market access for businesses on both sides. The agreement is seen as a key step in advancing India’s vision of Viksit Bharat 2047 and Britain’s global trade ambitions post-Brexit.
India and the UK share a strong economic relationship, with immense potential for growth in trade, services, and investment. The Indian diaspora in the UK—over 1.8 million strong—contributes more than six percent to the UK’s GDP, playing a vital role in strengthening economic and cultural ties.
According to official data, India–UK bilateral trade (goods and services combined) reached £42.6 billion in 2024, registering an 8.3 percent increase over the previous year. India’s exports stood at £25.5 billion, while imports from the UK were valued at £17.1 billion, making India the UK’s 11th largest trading partner. Trade in goods was worth £17.8 billion, and trade in services reached £24.8 billion during the same period.
India’s main exports to the UK include textiles, pharmaceuticals, refined oil, machinery, and gems and jewellery, while imports largely consist of industrial machinery, transport equipment, metals, and chemicals.
Investment remains another strong pillar of the bilateral relationship. India continues to be the second-largest source of foreign direct investment in the UK after the United States, contributing £13.1 billion in 2023. There are 971 Indian companies operating in the UK, generating nearly £68 billion in revenue and employing over 1.18 lakh people. On the other hand, the UK is India’s sixth-largest investor, with FDI inflows of around US$35.6 billion since 2000. Over 660 British companies are currently active in India, employing more than five lakh people.
The economic relationship is supported by several institutional mechanisms such as the India–UK Joint Economic and Trade Committee (JETCO) and the Economic and Financial Dialogue (EFD). These platforms facilitate regular consultations to review progress and explore new areas of cooperation, including fintech, green finance, and digital innovation.
Recent dialogues have led to key initiatives like the Green Growth Equity Fund, which channels investments into renewable energy and sustainable infrastructure projects in India. The Financial Markets Dialogue and the India–UK Financial Partnership have further expanded cooperation in capital markets, fintech, and climate finance.
Beyond trade and finance, the partnership extends into technology and innovation through programmes such as techXchange, which connects Indian start-ups with British investors and incubators. In aviation, connectivity between the two nations remains robust, with regular flights operated by Air India, Vistara, Virgin Atlantic, and British Airways linking major Indian cities with London.