Keir Starmer: UK and India Poised for Major Economic Growth by 2028
October 2025, Mumbai — British Prime Minister Keir Starmer has expressed his confidence that the United Kingdom and India are on the cusp of significant economic growth by 2028, with India set to become the world’s third-largest economy. Addressing business leaders at the Global Fintech Fest in Mumbai, Starmer outlined a bold vision for the future of UK-India economic relations, highlighting the growing potential of both countries as they look to collaborate in key sectors such as technology, trade, and renewable energy.
India: The Rising Economic Power
Starmer’s remarks underscored India’s impressive trajectory towards becoming an economic superpower. “India is on track to become the third-largest economy in the world by 2028,” said Starmer, noting the country’s dynamic growth and rapidly expanding market. He emphasized India’s youthful demographic, with more than half of its population under the age of 25, making it a vibrant hub for innovation, technology, and industry.
India’s remarkable economic performance, combined with its rising influence on the global stage, positions it as a major player in the future of the global economy. Starmer pointed out that India’s leadership in sectors such as technology, fintech, and green energy will be key drivers of this growth. “India’s vision for becoming a fully developed nation by 2047, with a focus on sustainable development and innovation, is an incredible opportunity for both our nations to grow together.”
UK and India: Natural Partners for the Future
Prime Minister Starmer described the UK and India as “natural partners,” drawing attention to the complementary strengths of both economies. The UK, with its established leadership in sectors like finance, life sciences, and technology, is well-placed to collaborate with India, whose emerging markets, skilled workforce, and technological prowess are becoming increasingly important in the global landscape.
“We are already seeing the extraordinary growth of the UK’s tech sector, one of only three nations globally with a trillion-dollar tech industry. India, too, is positioning itself as a major force in tech, poised to become the fourth nation with a trillion-dollar tech sector,” Starmer stated. Both countries are also leading powers in artificial intelligence (AI), with their collaboration in this space set to drive innovations that will shape the global economy.
A Partnership Focused on Innovation and Sustainability
Starmer’s vision for the future of UK-India relations is rooted in innovation and sustainability. The UK-India Comprehensive Economic and Trade Agreement (CETA), signed earlier this year, is seen as a pivotal step toward fostering deeper economic ties between the two countries. This trade deal promises to open new opportunities across multiple sectors, including renewable energy, green technologies, life sciences, and, notably, fintech.
The UK PM also stressed that the trade deal would significantly boost jobs and investments in both countries. “This agreement will create thousands of jobs across the UK, while providing unparalleled access to India’s rapidly growing economy for British businesses,” Starmer said. The deal is expected to generate up to 10,600 new jobs in the UK and provide Indian businesses with easier access to the British market, particularly in sectors like textiles, engineering, and pharmaceuticals.
Additionally, the UK and India are working together to expand their leadership in clean energy and environmental sustainability. Both nations have committed to tackling climate change and accelerating the transition to green energy, with substantial investments in renewable technologies, electric mobility, and sustainable infrastructure.
Key Areas of Collaboration
Several key areas are set to benefit from the growing UK-India economic partnership:
- Technology and Innovation: With both countries positioned as global leaders in the tech industry, the UK and India are collaborating to develop next-generation technologies. Starmer highlighted the potential of AI, data science, and cyber security as critical areas for future cooperation.
- Trade and Investment: The CETA deal offers significant trade benefits, particularly in sectors such as textiles, footwear, and engineering goods. The agreement also aims to support small and medium-sized enterprises (SMEs) and create investment opportunities in both markets.
- Fintech and Financial Services: Both countries are seen as global leaders in fintech. India’s booming digital payment landscape and the UK’s established financial sector provide fertile ground for partnerships in banking, payments, and financial services innovation.
- Education and Skills Development: The UK is a leader in higher education, with many British universities already establishing campuses in India. Starmer emphasized the importance of building educational ties and increasing opportunities for Indian students in the UK, particularly in STEM (Science, Technology, Engineering, and Mathematics) fields.
- Renewable Energy and Sustainability: As both nations accelerate their efforts to combat climate change, there is an increasing focus on sustainable development. The UK-India partnership in green energy will see collaboration in areas such as clean tech, electric vehicles, and carbon capture technologies.
A Strategic and Political Partnership
Beyond trade and business, the UK and India are deepening their strategic and political cooperation. Starmer reiterated the importance of India’s growing global influence and its role in promoting peace and stability, especially in the Indo-Pacific region.
“We sit together in the Commonwealth and G20, and we share common values of democracy and international cooperation. As a permanent member of the UN Security Council, India will play an even greater role in shaping the future of global peace and security,” Starmer added, echoing the UK’s support for India’s bid for a permanent seat at the UN Security Council.
Looking Ahead to 2028
With India’s economic growth on track to soar in the coming years, the UK-India relationship is poised for even greater expansion. By 2028, India is expected to become the third-largest economy in the world, and the UK’s close collaboration with India will undoubtedly play a significant role in realizing that vision.
The partnership between the two nations is not just about trade or business; it is a long-term strategic alliance that focuses on shared values, global progress, and sustainable growth. As both nations work together to build the economies of the future, they are poised to lead the way in areas such as technology, innovation, and environmental sustainability.
In conclusion, Keir Starmer’s remarks signal a new chapter in UK-India relations, one that is focused on harnessing the strengths of both nations to build a prosperous and sustainable future. With the next few years set to be pivotal for global economic shifts, the UK and India are set to rise together as major economic powers by 2028.
