Both the UK and Indian governments have made economic growth central to their missions. Modi has set out a transformative vision of Viksit Bharat 2047. In the UK, boosting trade abroad is a vital pillar of our efforts to deliver a stronger economy at home. Together, through a strengthened UK-India partnership, we can achieve both goals.
Starmer has said that a new trade deal with India represents a step forward in the mission to deliver growth. So, early next year, we are relaunching talks for a comprehensive free trade agreement that delivers for the British and Indian people. A deal that can support jobs, deliver for high-potential sectors and increase our supply chain resilience.
From the innovative startups at the Bengaluru Tech Summit to the good-humoured fishmongers in Mumbai who promptly offered a UPI scanner before I asked “kitna?”, I am inspired by the dynamism and entrepreneurial spirit that I’ve experienced all across India. It was no coincidence that UK foreign secretary David Lammy was in New Delhi within three weeks of taking office.
With the fastest growing economy in the G20, India is on course to have the world’s third largest economy by 2030. It is already larger than the UK’s. India continues to be the second largest source of foreign direct investment (FDI) for the UK in terms of number of projects. For all these reasons and more, India is on this government’s speed-dial.
It is vital to the UK’s growth strategy, and we have a solid bedrock on which to build. There are already more than 950 Indian-owned businesses operating in the UK. A recent report by Grant Thornton UK showed that 89% of mid-market Indian businesses referred to the UK in their growth preferences.
Our offer to Indian businesses is that we have one of the world’s largest and most open economies, with a legal system that sets standards around the globe, in addition to clear regulatory frameworks and protections. The UK offers a vibrant tech ecosystem and a global innovation hub, valued at over $1 trillion.
We are home to a third of all Europe’s unicorns—startups that have reached a valuation of at least $1 billion. And initiatives like the UK-India Infrastructure Financing Bridge between Niti Aayog and the City of London are bringing the UK’s financing expertise to bear in supporting India’s growth.
Building on that, following the UK general election which took place this summer, the new government has started work to get Britain growing again. On 30 October, Chancellor Rachel Reeves—our first-ever female finance minister—delivered her inaugural budget.
It is a ground-breaking budget, delivering important structural changes to ensure UK finances are on a sustainable path, while also increasing public investment by £100 billion over five years. This investment is expected to catalyse private investment, create jobs and significantly boost productivity.
A new National Wealth Fund will mobilize over £70 billion of private investment, including from overseas, to support the government’s upcoming industrial strategy, clean energy and growth priorities. The budget also set out a corporate tax roadmap, maintaining a rate that is the lowest in the G7.
The International Monetary Fund (IMF) has said that Britain’s approach is bearing fruit. It has recently upgraded forecasts for Britain’s growth, and inflation is now close to the government’s target. This is the largest upgrade of a G7 nation by the IMF.
During her closely followed speech at the City of London’s Mansion House, the chancellor reinforced the importance of free and open trade with our most important partners, including India. She reiterated the need to realize the economic opportunities presented by fast-growing economies like India.
The recently announced UK-India Technology Security Initiative (TSI), spearheaded by our national security advisors, is an excellent example of how the UK and India can move forward together on the defining technologies of this decade.
The TSI will expand our collaboration in emerging technologies across priority sectors. Our partnership is wide-ranging, encompassing shared interests; from the transition to net zero and the impact of artificial intelligence to advances in healthcare and life sciences. We are working together to find solutions to global challenges.
But our ambition doesn’t stop there. I have been really pleased to see the strong momentum this year in expanding our living bridge—the enduring cultural ties between our people. The University of Southampton will establish a comprehensive campus in Delhi NCR, becoming the first international university to do so under India’s new National Education Policy. And India will establish two new consulates in the UK, in Manchester and my birthplace Belfast.
These are exciting developments because they represent investments that will build new bridges. And it is that boundless future potential that makes this partnership so promising.