Indian Prime Minister Narendra Modi and British counterpart Keir Starmer hailed their new trade deal as potentially transforming commercial links, as London unveiled new Indian investment that would be a “launch pad” for closer ties.

Starmer is in the financial capital of Mumbai on a two-day visit to India, joined by more than 100 leaders from Britain’s business, culture and university sectors, as he rushes to harvest the trade deal signed in July.

The deal envisages cuts in tariffs on goods from textiles to whisky and cars, and allows more market access for businesses in the world’s fifth- and sixth-largest economies, aiming to boost trade by a further 25.5 billion pounds ($34 billion) by 2040.

“This relationship matters more than ever,” Starmer told reporters at a press conference before he flew home. “We’re opening up new opportunities in India for British businesses, opportunities that other countries simply do not have. It has given us a unique edge.”

MODI HAILS INDIAN DYNAMISM, UK EXPERTISE

Earlier, Modi told a business forum he was confident that the two countries would double their trade from the current $56 billion ahead of their 2030 target to do so.

Starmer’s visit, accompanied by the largest-ever business delegation, “reflects the new energy and broad vision” in the partnership, Modi said after talks with the British premier.

“India’s dynamism and the UK’s expertise together create a unique synergy,” Modi said, speaking in Hindi.

Starmer said the focus of his visit was about doubling down on the potential of the trade deal, which is expected to take effect within a year.

“This is just the start,” Starmer later told a fintech conference. “It’s time to invest in the United Kingdom, invest in this relationship and invest in our shared future.”

An Indian foreign ministry statement said the two sides agreed to set up a connectivity and innovation centre and a joint centre for AI, and unveiled a critical minerals industry guild to bolster supply chains and promote green technologies.

INDIA, UK SIGN DEFENCE DEALS

Earlier, Starmer’s office said 64 Indian companies would collectively invest 1.3 billion pounds ($1.75 billion) in Britain, without elaborating.

But the two countries do not agree on everything.

After Modi wished Russian President Vladimir Putin a happy birthday on Tuesday, Starmer joked to reporters that he would not be doing the same, given Britain’s strong backing for Ukraine and condemnation of Russia over its invasion.

Asked if he raised with Modi concerns about India buying Russian oil, Starmer said they did discuss it and looked particularly at ways to end the Russia-Ukraine war, which he said was “the outcome that we both want”.

Britain says it respects India’s strategic independence and can work with countries even if their views may differ on certain issues.

In an early indication of that strategy and in a bid for closer defence ties, Britain said it had signed a 350-million-pound ($468 million) contract to supply the Indian army with lightweight multi-role missiles built in Northern Ireland, and the next phase of a deal, worth an initial 250 million pounds, to collaborate on electric-powered engines for naval ships.

New Delhi has for decades been dependent on Russia for much of its military hardware but has slowly moved away in recent decades to buy more from France, Israel and the US

Britain said two UK universities had been given approval to open new campuses in India, which it said would help the UK expand its influence “without adding pressure to domestic migration figures”.

Starmer’s government has been tightening rules around international students and has said more Indian visas were not on the agenda for talks.