UK Foreign Secretary David Lammy hailed the signing of a "significant and comprehensive" Free Trade Agreement (FTA) and the ambitious UK-India Vision 2035 agreement between Prime Ministers Narendra Modi and Keir Starmer on Thursday as a transformative step in bilateral ties. The agreements, signed during Modi’s visit to the UK, aim to double bilateral trade to USD 120 billion by 2030 and set a roadmap for collaboration over the next decade.
Lammy described the FTA as the UK’s most significant post-Brexit trade deal and India’s most comprehensive ever, projecting a GBP 25.5 billion boost in bilateral trade, GBP 4.8 billion in UK GDP growth, and GBP 2.2 billion in annual wage increases. “The UK is thrilled that Prime Minister Modi is visiting to sign the FTA,” he said, underscoring its pivotal role in deepening economic ties.
Annual reviews will ensure the partnership remains “dynamic, aligned, and responsive to rapid global change,” he added.The UK-India Vision 2035, a forward-looking pact, outlines goals in defence, technology, climate, and education, fostering innovation, green finance, and critical minerals cooperation.
On the development front, Lammy addressed misrepresentations in sections of the UK’s right-wing press, clarifying that direct aid funding to India ceased in 2015. Instead, the UK now pursues an investment-led approach, supporting India’s climate goals and sustainable development while delivering financial returns for the UK. “India’s development matters globally. As the world’s most populous country, its choices on climate and growth will shape global outcomes,” he said. Supporting India’s green transition advances the Sustainable Development Goals (SDGs), protects vulnerable populations, and aligns with UK priorities like economic growth, trade, and national security.
The agreements strengthen UK-India ties in the Indo-Pacific, with Lammy calling India a 21st-century superpower and a pivotal partner in tackling global challenges like terrorism, cybercrime, and climate change. Annual reviews will keep the partnership dynamic.
Also Read: PM Modi’s UK Visit to Seal Historic Trade Deal!