In a significant diplomatic achievement, outgoing British Prime Minister Keir Starmer has successfully concluded the long-anticipated India-UK Free Trade Agreement (FTA). This major development comes just before his announcement to step down from his position. During discussions with Indian Prime Minister Narendra Modi at the G7 Summit 2026, both leaders finalized the details, setting July 15 as the implementation date for the India-UK Comprehensive Economic and Trade Agreement (CETA). This agreement is poised to substantially enhance the trade relationship between the two nations, which currently amounts to approximately £48 billion annually.
Starmer, who has been a staunch advocate for strengthening ties with India, made the trade agreement a central focus of his administration. He emphasized the potential for economic growth and the advantages of more accessible and cost-effective trade, citing India’s growing influence on the global economic stage. The accord is seen as a pivotal opportunity to bolster economic interactions and partnerships between the UK and India.
Since taking over as Labour leader after the party’s 2019 electoral defeat, Starmer has been dedicated to mending and nurturing connections with the British Indian community, aiming for a robust partnership with India. Under his leadership, the Labour Party pledged to enhance collaboration with India across various sectors, including trade, security, education, technology, and climate change initiatives. Starmer’s efforts have been part of a broader strategy to fortify international relations and foster cooperative opportunities.
Before his foray into politics, Starmer had a distinguished career in law, notably serving as Director of Public Prosecutions. His political journey saw him ascend to the role of Prime Minister after Labour’s resounding victory in the 2024 elections. However, despite early achievements in economic stabilization and domestic reform, his tenure faced challenges that eventually undermined his leadership position.
In a heartfelt resignation statement, Starmer acknowledged that he no longer retained the full confidence of his parliamentary party to lead Labour into the forthcoming general election. He expressed his acceptance of this decision with respect and gratitude, marking the conclusion of a significant era in British politics.