India’s rise and the UK’s renewed partnership

“India has recently overtaken Japan to become the world’s fourth-largest economy. By 2028, it aims to emerge as the third-largest. From what I have seen, India is moving swiftly toward that goal. Inspired by the vision of Viksit Bharat, the nation is on track to become a developed country by 2047 and we want to be part of that journey.”

With these words, UK Prime Minister Keir Starmer, who is on his first visit to India since assuming office, captured the world’s attention. His remarks were not mere diplomatic niceties. They reflected a serious recognition of India’s growing economic strength and global influence at a time when international trade and alliances are being reshaped.

Starmer arrived in India with a 125-member business delegation, underscoring the commercial and strategic importance of this visit. Landing in Mumbai, India’s financial capital, he met Prime Minister Narendra Modi at Raj Bhavan, and the two leaders later addressed a joint press conference. Starmer began his remarks with “Namaskar Doston,” a gesture warmly received by Indian audiences. The symbolism was clear: Britain no longer views India through a colonial lens, but as a partner of equals.

At the centre of this renewed engagement stands the India–UK Free Trade Agreement (FTA) , a landmark deal both leaders described as a “historic milestone.” For the UK, this is the most significant trade pact since its exit from the European Union. For India, it represents another step toward deeper integration with global markets on its own terms.

Under the agreement, India will gradually reduce tariffs on several British products from around 15% to as low as 3% in some sectors. This means that goods like cars, beverages, cosmetics, and medical equipment will become more affordable for Indian consumers. In return, Indian exports of textiles, pharmaceuticals, and engineering goods are expected to expand in the British market. The agreement is projected to create new jobs, encourage investments, and strengthen technology partnerships between the two democracies.

Starmer highlighted that the FTA would reduce Britain’s reliance on the EU and give a major boost to its post-Brexit trade ambitions. Britain’s economy has been struggling with inflation, rising living costs, and slow productivity. For London, access to India’s vast and fast-growing market is a much-needed opportunity.

However, the deal has not escaped criticism. In the UK, opposition parties and small-scale business groups fear the agreement could hurt local manufacturers. In India, too, some experts expressed concerns about potential impacts on farmers, dairy producers, and small industries. The Indian government has moved cautiously, ensuring that sensitive sectors like agriculture and dairy remain outside the FTA’s scope. Tariff reductions are being implemented in phases to give domestic producers time to adapt.

Beyond trade, the visit covered wide-ranging cooperation including education, technology, and defense. Nine British universities will soon open campuses in India, further strengthening academic and research ties. A separate defense pact allows Indian Air Force instructors to work with the Royal Air Force in the UK, marking a new level of trust between the two nations.

Starmer’s visit also carries strong geopolitical undertones. The U.S. recently imposed steep tariffs on Indian exports, accusing New Delhi of buying oil from Russia. President Trump’s “dead economy” remark about India was both provocative and inaccurate. Against this backdrop, the UK’s positive and pragmatic engagement comes as a welcome contrast.

India’s economy, despite global headwinds, has displayed remarkable resilience. Having overtaken Britain in 2022 to become the world’s fifth-largest economy, India has now surpassed Japan to stand fourth. With steady growth, robust consumption, and a youthful workforce, it is well on course to reach the third position by 2028 behind only the U.S. and China.

This transformation is historic in every sense. The country once ruled by Britain is now admired by it. When India gained independence in 1947, British officials doubted its ability to govern itself or sustain its economy. Eight decades later, Britain seeks India’s partnership as it charts its own uncertain post-Brexit path. History has, indeed, come full circle.

Prime Minister Modi, echoing the same sentiment, said that the India–UK partnership would act as a pillar of stability and growth in today’s uncertain world. He emphasized that the 1.8 million people of Indian origin in the UK serve as a living bridge between the two nations.

The implications of this evolving relationship go far beyond bilateral trade. As the global economy shifts, India is emerging as a central player, a bridge between developed and developing worlds. The FTA with Britain symbolizes more than commercial convenience; it represents confidence in India’s trajectory, its governance, and its market potential.

In contrast, the U.S.’s protectionist stance threatens to isolate it further, while India’s outreach to partners like the UK highlights its commitment to open, mutually beneficial trade. For Britain, aligning with the world’s fastest-growing major economy offers a path toward renewed economic vitality.

If implemented wisely, the India–UK Free Trade Agreement can become a model for future global partnerships where emerging powers and advanced economies cooperate on equal footing, with fairness and respect.

A century ago, Britain drained India’s wealth. Today, it seeks to invest in it. The story of this reversal is not just about economics, it is about dignity, confidence, and a nation reclaiming its rightful place in the world order.