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UK looks to India for job creation amid economic stagnation and rising unemployment

52 14
10.10.2025

Prime Minister Keir Starmer’s ambitious trade mission to India this week marks a defining moment for the United Kingdom’s fragile post-Brexit economy. With domestic growth stagnating, unemployment at its highest level in four years, and public frustration mounting over inflation and immigration, Starmer is betting heavily on foreign investment-particularly from India-to breathe new life into Britain’s struggling labor market and restore confidence in his government’s economic strategy.

During his two-day visit to Mumbai, Starmer announced a package of investment deals worth £1.3 billion ($1.7 billion), secured from 64 Indian investors. The pledges are projected to create upwards of 7,000 new jobs in the UK, primarily across high-growth industries such as next-generation electric motorbikes, semiconductor development, and agricultural innovation. The prime minister hailed the effort as “the biggest trade mission that the United Kingdom has ever sent to India,” framing it as both a practical and symbolic milestone in his administration’s effort to rebuild Britain’s economic foundations.

“This is the return leg of a partnership we began earlier this year when Prime Minister Narendra Modi visited London to finalize the free trade agreement,” Starmer said during a joint press briefing in Mumbai. “The FTA is not just about trade figures-it’s about rebuilding the foundations of Britain’s economic confidence after years of uncertainty and drift.”

The stakes could not be higher for Starmer, whose Labour Government swept into office promising to “rebuild Britain” after what he called “a lost decade of Conservative economic mismanagement.” However, since taking power, his administration has struggled to ignite meaningful growth amid declining industrial output, stubborn inflation, and rising borrowing costs. The electorate, weary after years of political upheaval, is demanding results-and quickly.

The UK’s unemployment rate, now at 4.6 percent-the highest since 2021-means that roughly 1.67 million people are currently out of work. Manufacturing and retail, once the twin pillars of the British economy, have been hit particularly hard by sluggish domestic demand, global competition, and ongoing disruptions in supply chains. Against this challenging backdrop, Starmer’s promise of 7,000 new jobs may not transform the labor market, but it carries outsized political importance as a symbol of action and ambition.

Indian Prime Minister Narendra........

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