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UK Prime Minister Keir Starmer announced that UK-India free trade talks will relaunch in the new year following his bilateral meeting with Prime Minister Narendra Modi at the G20 summit, per a statement from the UK government.
The UK will seek a new strategic partnership with India, including a trade agreement, as well as deepening co-operation in areas like security, education, technology, and climate change, it said.
“A new trade deal with India will support jobs and prosperity in the UK – and represent a step forward in our mission to deliver growth and opportunity across our country,” Starmer said.
The meeting between Modi and Starmer on the sidelines of the G-20 Summit in Rio de Janeiro, Brazil, on Monday, was the first meeting between the two PMs, according to release issued by the Ministry of External Affairs.
“Both leaders underlined the importance of resuming the FTA negotiations at an early date and expressed confidence in the ability of the negotiating teams, to address the remaining issues to mutual satisfaction, leading to a balanced, mutually beneficial and forward looking FTA,” the release added.
India had been awaiting an announcement of resumption in the India-UK FTA talks by the new Labour Party, that swept to power in the UK after ten years on July 5 2024, since the visit of UK Foreign Secretary David Lammy to Delhi later in the month.
The businessline recently reported that with the budget session in the UK over last month-end, Commerce Department officials were expecting the British negotiating team to get back to the negotiating table.
“Whether it’s lowering Indian tariffs to help British firms export to this dynamic market or boosting investment which already supports over 600,000 jobs across both countries, striking a deal is important to deliver this Government’s core mission of driving economic growth,” Business and Trade Secretary Jonathan Reynolds said.
The India-UK FTA talks, which was initiated by the Conservative government early 2022, has been stuck on a handful of issues including market access for key items such as automobiles and Scotch, liberalisation of services including legal, banking and insurance and more visas for workers.
“A deal with India would boost the UK’s trading relationship, worth £42 billion in the 12 months to June 2024. UK exports to India are worth £16.6 billion,” the UK government statement noted.
Expressing satisfaction at the progress in the bilateral relationship, the two Prime Ministers reaffirmed their commitment to strengthen the India-UK Comprehensive Strategic Partnership with a focus on economy, trade, new and emerging technologies, research and innovation, green finance and people-to-people contacts, the MEA stated.
