Prime Minister Sir Keir Starmer’s trip to India this week has been marked by a stark contrast between his reception abroad and his challenges at home. Arriving in Mumbai after a difficult month in the UK, Starmer was greeted by 5,700 posters bearing his image lining the streets, with closed roads and performances by dancers and musicians. The welcome was orchestrated by the Maharashtra government at the request of Prime Minister Narendra Modi, who called Starmer his “friend” during a press conference.
The visit celebrated the clinching of a free trade agreement with India, a deal that had eluded Starmer’s Conservative predecessors. Starmer had told Modi at the G20 in Rio de Janeiro last year that talks should either be accelerated or abandoned. The subsequent agreement marks a significant achievement for Labour, though its economic impact is modest: government modelling suggests it will add just 0.13% to GDP by 2040.
Starmer’s motorcade passed through Mumbai with a level of pageantry that drew comparisons to Theresa May’s 2018 trip to China. However, the prime minister’s dance at a Diwali celebration was described as awkward, reminiscent of May’s similar missteps. The event was held at Mumbai’s most exclusive hotel to mark the signing of the trade deal under Labour.
Onboard Starmer’s flight was the largest business delegation since May’s China trip, with over 120 chief executives, founders, and cultural leaders. Starmer addressed executives from firms like EY, Barclays, and British Airways, urging them to secure deals during the trip. Business leaders expressed excitement about the access and goodwill towards UK businesses, but many were preoccupied with the forthcoming budget and concerns over national insurance rises, tax increases, and inflation.
The trade deal is seen as a small contribution to filling the estimated £30-40bn budget hole facing Chancellor Rachel Reeves. Low tariffs have yet to be implemented, and officials cannot provide a timeline for parliamentary ratification. University vice-chancellors accompanying Starmer also sought clarity on the budget’s impact on higher education.
