'Starmer's Exit Won't Affect India-UK Trade Pact': City of London Corporation Policy Chief

Political changes in the United Kingdom will not affect the momentum behind the landmark India-UK Free Trade Agreement (FTA) or the broader economic partnership between the two countries, Chris Hayward, Policy Chairman of the City of London Corporation, said during a visit to Mumbai.

Responding to concerns over uncertainty following Prime Minister Keir Starmer's resignation, Hayward stressed that the bilateral relationship enjoys broad political support and remains firmly on course.

"There will be no change to the relationship," Hayward said. "Prime Minister Starmer did a great job in getting the FTA through. It is a great agreement for both countries, and the policy approach towards India will remain positive."

His remarks come at a crucial juncture as both nations move towards ratifying the long-awaited trade pact, widely regarded as one of the most significant economic agreements between India and the UK in recent decades.

Calling the FTA a "game changer", Hayward said the agreement would unlock fresh investment opportunities, simplify business engagement and strengthen trade flows between two of the world's largest economies.

"Investment is what this is all about. We want to attract more Indian businesses into the UK and encourage British companies to expand in India. There is already a significant UK presence here, and the FTA will make it easier to get deals across the line," he said.

Hayward, who is leading a business-focused visit to Mumbai and Gujarat's GIFT City, described India as one of the world's most attractive investment destinations, citing its status as the fastest-growing major economy.

"The relationship between India and the UK is incredibly important. India is the fastest-growing economy, and we already have strong trading ties that will be enhanced further through the FTA. My visit is focused on meeting government departments, financial institutions and businesses to stimulate greater trade and economic cooperation," he said.

The City of London Corporation, which represents the interests of the UK's financial services sector, is also seeking deeper collaboration in infrastructure financing and sustainable development.

Hayward revealed that an agreement had been signed between the City of London and Indian authorities to support infrastructure investment initiatives, including projects linked to the prime minister's transport programme.

"We want to help channel capital into major infrastructure projects and bring British expertise in project management," he said.

"We visited Mumbai's Sea Link project, which is an impressive example of the scale of infrastructure development taking place in India," Hayward added.

On talent mobility, Hayward highlighted the natural flow of students, professionals and skilled workers between the two countries, noting that both India and the UK benefit from strong educational institutions and deep people-to-people ties.

Asked about perceptions of London, Hayward sought to counter concerns about safety and business confidence.

"One misconception is that London is not safe. London remains one of the safest cities in the world to do business in and a great place to work, invest and visit," he said.

Reflecting on the broader trajectory of bilateral ties, Hayward said India-UK relations are stronger today than at any point in recent years.

"The bond between India and the UK is stronger than ever before. Our leaders have worked extremely well together, and I am confident that relationship will continue. We have deep historical links and increasingly strong economic ties," Hayward said.

Looking ahead, Hayward said the successful implementation of the FTA would represent the single biggest opportunity for both nations.

"It will be transformational. The scope for collaboration is enormous, and the benefits will be felt in both countries," he said.

As ratification of the trade pact nears, Hayward's message was clear - despite political developments in Westminster, the UK's commitment to strengthening economic engagement with India remains firmly intact.