Keir Starmer, the human rights barrister who became Britain's Prime Minister with a landslide victory in July 2024, has achieved a key promise: finalizing the long-awaited Free Trade Agreement (FTA) with India. Just days before announcing his resignation on Monday morning at 10 Downing Street, Starmer met Indian Prime Minister Narendra Modi on the sidelines of the G7 Summit in France. During that meeting, both leaders set July 15 as the date for the FTA to come into force.
India-UK CETA to Boost Bilateral Trade
The agreement, formally the India-UK Comprehensive Economic and Trade Agreement (CETA), is expected to significantly enhance the bilateral trading relationship, currently valued at £48 billion. Starmer had emphasized the deal's importance during his visit to Mumbai last October, stating, "It's not just a piece of paper, it's a launchpad for growth. With India set to be the third biggest economy in the world by 2028, and trade with them about to become quicker and cheaper, the opportunities waiting to be seized are unparalleled."
Starmer's Political Legacy and Labour's Turnaround
The 63-year-old MP for Holborn and St Pancras in London is credited with an impressive reversal of fortunes for the Labour Party after its crushing election defeat in December 2019. Under his leadership, Labour regained power with a strong mandate. Another significant aspect of his tenure was rebuilding the party's connection with British Indians, a community alienated under former leader Jeremy Corbyn due to a perceived anti-India stance on Kashmir. Starmer worked to mend relations, offering an olive branch to the diaspora.
Impact on UK Politics and Trade
With the FTA implementation set for July 15, the UK is expected to have a new leader around the same time. Starmer's resignation marks the end of a brief but impactful premiership, during which he prioritized strengthening economic ties with India. The CETA is anticipated to open new markets, reduce tariffs, and streamline trade procedures, benefiting sectors from technology to textiles. As India's economy continues to grow rapidly, the agreement positions the UK to capitalize on emerging opportunities.
