India aims to double bilateral trade with UK to $112 billion by 2030: Modi

Mumbai: India aims to double its bilateral trade with the UK to $112 billion by 2030, prime minister Narendra Modi said on Thursday at an event attended by his British counterpart Keir Starmer.

“Today, our bilateral trade is approximately $56 billion. We have set a target of doubling it by 2030. I am confident that we can achieve this target ahead of time,” he said at a CEO Forum in Mumbai, adding that the India-UK free trade agreement (FTA), signed in July, will boost small enterprises, create employment, and facilitate the opening of campuses of nine British universities in India.

The trade pact, titled Comprehensive Economic and Trade Agreement (CETA), encompasses partnerships in infrastructure, pharmaceuticals, energy, and finance.

“Today in areas such as telecom, AI, biotech, quantum, semiconductor, cyber and space, countless new possibilities are emerging. Even in the field of defence, we are moving forward towards co-design and co-production. Now is the time to work rapidly to transform all these possibilities into concrete co-operation,” he said, also highlighting emerging sectors such as critical minerals and rare earth.

Modi and Starmer, who was on a two-day visit to India, also announced Vision 2035, a blueprint of common ambitions of both the countries. “India and UK business leaders together can choose a sector where we can become number one in the world, be it fintech, green hydrogen, semiconductor or startups There can be many other sectors, let India and the UK set global benchmarks together,” Modi said.

Starmer said that the free trade agreement will add “billions of pounds” to UK’s GDP and hundreds of billions of rupees to India’s, as well as add billions to wages. Saying this is the biggest deal that the UK has done since it exited the European Union, Starmer highlighted that four Indian fintech companies—Razorpay, Cred, PayTm and Perfios—are planning to invest in the UK.

Calling upon the forum of business leaders, Starmer invited feedback and comments on any issues “that can be disentangled” for smooth implementation of the trade pact.

“We want to provide a direct channel for you – tell us what we need to do to go further and faster to deliver the most from this deal,” he said, adding that this includes areas where barriers need to be taken down and areas where more can be done to capitalize on opportunities.

India and the UK signed a landmark free trade agreement in July, ending years of protracted negotiations and marking a new phase in their economic partnership. The deal is expected will give a major push to bilateral trade and investment, offering greater market access across key sectors.

The agreement promises to unlock major economic gains for India by eliminating tariffs on 99% of New Delhi’s exports, covering nearly 100% of the trade value.

Indian businesses will benefit from zero-duty access to the UK, including for exports of textiles, footwear, carpets, cars, and marine products, which currently face tariffs of 4-16%. The UK will see tariff reductions in India on luxury items such as Scotch whisky and premium cars.