UK Prime Minister Keir Starmer kicked off a two-day visit to India on Wednesday, bringing along a huge delegation of over 100 business, academic, and cultural leaders.

The timing couldn’t be more significant, coming on the heels of the UK-India Comprehensive Economic and Trade Agreement (CETA), which was finalized in July after three long years of negotiations.

CETA is designed to make trade smoother by cutting tariffs on key sectors like textiles, whisky, and automobiles, with forecasts suggesting it could boost bilateral trade by a whopping £25.5 billion annually by 2040.

Starmer’s visit is the UK’s largest-ever trade mission to India, highlighting a clear strategic shift towards the Indo-Pacific region.

In an exclusive interview with Invezz, Professor Harsh V. Pant, Vice President at the Observer Research Foundation, unpacked what CETA really means, why Starmer’s trip is so important, and how India-UK relations are evolving in today’s fast-changing global landscape.

Excerpts:

Invezz: What kind of momentum do you think the India-UK Comprehensive Economic and Trade Agreement can create for businesses in both countries, especially after Prime Minister Modi’s visit to the UK earlier this year?

Harsh V. Pant: India-UK Comprehensive Economic and Trade Agreement (CETA) is very important for both India and the UK.

For India, it is considered a gold standard now for trade agreements, and India is negotiating with several partners. India’s industries, such as footwear, gems and jewellery, textiles, and heavy machinery, will benefit a lot.

For the UK, the main benefits are in sectors like alcohol and automobiles.

Although there are some operational challenges like UK CBAM (Carbon Border Adjustment Mechanism), bilateral investment agreements still underway, and omission of legal and financial services from the agreement, by and large, this agreement is good and its operationalisation will benefit both countries significantly.

Invezz: UK PM’s visit brings together over 100 UK business leaders and cultural figures. How important is this kind of trade mission for strengthening economic ties between the UK and India?

Harsh V. Pant: The UK Prime Minister bringing more than 100 leaders and cultural figures on this visit is a strong statement that the UK values its relationship with India.

Economic ties between the two countries are more important than ever. Pragmatic considerations will drive this relationship going forward, meaning trade and economic cooperation are the key drivers.

Invezz: With the ‘Vision 2035’ roadmap in place, what are some of the key areas where you see India and the UK collaborating more closely over the next decade?

Harsh V. Pant: Both India and the UK are focusing on building ties for the 21st century by going beyond traditional historical or diaspora issues.

The collaboration will be more pragmatic and aligned with current global realities.

The focus areas include trade and investment, technology and innovation, defense and security, climate and energy, health, education, and people-to-people ties.

Invezz: Turning to the bigger picture, with the recent strains in India-US relations, do you think this gives the UK a unique opportunity to become India’s more reliable and predictable partner?

Harsh V. Pant: Part of this growing focus on UK-India ties has been made possible because of the disruptive approach of US President Donald Trump on both sides, which has made countries look for predictable and like-minded partners who can offer resilience and stability.

The UK is seen as a partner that can provide some form of insurance in economic engagements against such volatility.

Invezz: Given the current challenges in India-US trade and diplomacy, do you see the UK stepping up as an alternative partner in critical areas like defense, technology, and supply chains?

Harsh V. Pant: The UK is moving towards an Indo-Pacific tilt, visible especially in its ties with India.

Interestingly, there is a broad political consensus in the UK across Labour and Conservative parties on strengthening relations with India.

Both countries have invested in this relationship, and India has reciprocated.

This is a unique opportunity to move away from traditional engagement on diaspora or history to a pragmatic partnership that serves both sides’ interests in a rapidly evolving global economic and political landscape.

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