At a time when social media threats, reciprocal actions, and shrill rhetoric are becoming the global norm, the manner in which the India-U.K. economic relationship is unfolding is a refreshing change. U.K. Prime Minister Keir Starmer’s two-day visit to India last week reinforced the existing solidity in economic relations and deepened them. India’s negotiations with the U.S. have been fraught, erratic, and dramatic. U.S. President Donald Trump has also shown that he is more than willing to change the contours of deals already struck. Negotiations with the European Union have been less fraught and dramatic, but there certainly seems to be a gap between the positive assurances made by the leaders and what the negotiators say in private about the deal’s progress. Against this backdrop, Sir Starmer chose to bring a delegation of more than 100 entrepreneurs, cultural representatives, and university vice-chancellors and left India with defence, investment and movie deals, further cementing the trade deal signed in July. The keenness to deepen trade relations makes eminent sense. India, despite being the fourth-largest economy in the world and one of the largest markets, accounts for less than 2% of the U.K.’s total merchandise exports. The U.K. accounts for about 3% of India’s exports. There is ample scope for trade to grow. Growing India-U.K. trade could also mitigate some of the impact of the U.S.’s punitive 50% tariffs, if they remain.
One of the unsaid reasons why India is slowing its capital expenditure is because it needs to fund its defence acquisitions. Sir Starmer’s visit made sure that some of these acquisitions — in the form of a £350 million missile supply deal — came the U.K.’s way. The U.K. government also revealed that 64 Indian companies have so far committed to invest £1.3 billion in the U.K. It goes without saying that U.K. companies would have made similar investment commitments in India, but the Indian government has inexplicably not made these public yet. Yet, statements by companies such as Rolls-Royce show that there is enthusiasm there. The Indian population in the U.K. is the largest ethnic minority, and this is not lost on the political leadership either. One of the first things Sir Starmer did on arriving in Mumbai was to visit Yash Raj Films (YRF) and meet Indian producers. The result was that YRF has committed to shoot three films in the U.K. Two U.K. universities have also committed to opening campuses in India. This cross-sector cooperation is how mature democracies should work together — without fuss and ego, just business.
Published – October 13, 2025 12:10 am IST
