India and UK strengthen economic ties amid global trade challenges.
During UK Prime Minister Keir Starmer’s recent visit to India, the two nations solidified their economic partnership, particularly in defense and trade, amidst rising tensions in global trade dynamics. The visit, which included over 100 business representatives, emphasized the Comprehensive Economic and Trade Agreement (CETA), aiming to double bilateral trade from $56 billion to $120 billion by 2030. Starmer’s discussions resulted in a significant $350 million missile supply deal for India’s defense sector and highlighted the potential for increased Indian exports to the UK, especially in textiles and pharmaceuticals, benefitting from reduced tariffs under CETA. This growing relationship is particularly vital as India faces punitive tariffs from the US, positioning the UK as a strategic partner for economic growth and diversification. However, experts underscore the need for India to implement domestic reforms to fully capitalize on the opportunities presented by this partnership; improving regulatory frameworks and export processes will be essential to enhance India’s competitiveness in the global market. Overall, the developments indicate a proactive approach by India to bolster its trade relationships while navigating challenging international economic landscapes.