Mumbai

The opportunities waiting to be seized under the India-UK free trade agreement are "unparalleled", British Prime Minister Keir Starmer said on Wednesday as he kick-started his first visit to India after assuming charge.

Starmer said the trade deal is a "launchpad for growth" with India set to be the third biggest global economy by 2028.

The British leader, accompanied by a delegation of 125 of the UK's most prominent business leaders, entrepreneurs and university vice chancellors, landed in Mumbai this morning on a two-day visit.

Starmer and Prime Minister Narendra Modi will hold wide-ranging talks on Thursday to explore ways to further expand bilateral ties.

"We signed a major trade deal with India in July -- the best secured by any country -- but the story doesn't stop there," the British prime minister said.

"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," he said.

Starmer said growth in India means more choice, stability and jobs at home for the British people.

His visit to India comes two-and-half months after the two countries inked the landmark free trade pact that will increase market access, cut tariffs and double bilateral trade by 2030.

The landmark trade deal was firmed up during Modi's visit to London in July.

A British readout on Starmer's India trip said it seeks to build on the momentum from the UK-India trade deal as it will open access for British businesses to one of the fastest-growing economies in the world.

Following the signature of the landmark UK-India trade deal in July, which will lower tariffs on British goods being imported into India, the "door is now open" for British businesses to "turbocharge" their trade with one of the fastest growing economies in the world, it said.

Top executives of major companies such as Rolls Royce, British Telecom, Diageo, London Stock Exchange and British Airways are part of Starmer's delegation.

"We've shown there is no limit on our ambition to grow trade with India... in less than a year we've gone from restarting talks on a deal, to bringing 125 brilliant business leaders to its commercial capital," said Peter Kyle, the UK's Business and Trade secretary.

The deal is the best any country has ever secured with India and places British businesses at the front of the queue to access a huge and ever-growing market, he said.

"Now we are hitting the ground running and using every means necessary to ready businesses to take full advantage of the massive wins we've secured once the deal comes into force so we can deliver growth, jobs, and prosperity at home," he added.

India's average tariff on British products will drop from 15 per cent to three per cent. This means British companies selling products to India, from soft drinks and cosmetics to cars and medical devices, will find it easier to sell to the Indian market, according to the readout.

It said whisky producers will particularly benefit from tariffs being reduced immediately from 150 per cent to 75 per cent, and then dropped even further to 40 per cent over the next 10 years that will give the UK an advantage over international competitors.

On talks between Starmer and Modi, the readout said it will strengthen the UK-India relationship further, including through the Technology Security Initiative originally signed a year ago.

In recognition of technology as an engine for growth in the UK and beyond, the two leaders will aim to enhance bilateral cooperation across artificial intelligence, telecoms and defence technology to create new opportunities for businesses to invest and grow, while bolstering national security, the readout mentioned.

India is fast becoming one of the world's most significant technology players with the tech sector expected to be valued at one trillion pounds by 2030, it said.

Sean Doyle, chairperson and chief executive of British Airways, said the airline's ties with India were established over 100 years ago and it today has around 2,500 British Airways staffers in the country.

"The Free Trade Agreement with India will boost economic momentum between our two countries and British Airways really sits at the centre of that activity, acting as an enabler for increased trade," he said.

"As the airline that offers the biggest network of any European carrier into the North Atlantic, we also help connect India to the US and beyond, so when you add this factor into the mix, there's a lot to be excited about for our two connected economies," he said, according to the readout.

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Manchester Airport will also launch a new direct route to Delhi operated by IndiGo, adding to its existing Mumbai service and making it the only UK airport outside London with connections to both cities, it said.