Brazil: On Monday, British Prime Minister Keir Starmer announced plans to resume trade discussions with India following a bilateral meeting with Indian Prime Minister Narendra Modi at the G20 summit in Brazil.
"Expanding trade globally is vital for building a robust domestic economy. The UK is dedicated to negotiating a trade deal with India, one of the world's fastest-growing economies," read a statement from Starmer’s office.
The statement emphasized the UK’s intent to forge a new strategic partnership with India, which would include a trade agreement and enhanced collaboration in areas such as security, education, technology, and climate change. Starmer expressed optimism that a trade deal with India would bolster jobs and economic prosperity in the UK.
“Driving economic growth is central to improving living standards for working people,” the statement from 10 Downing Street quoted Starmer as saying. “A trade deal with India would not only support jobs and prosperity but also mark a significant step toward creating growth and opportunities across the UK.”
Meanwhile, a statement from Prime Minister Modi's office highlighted both leaders’ commitment to restarting Free Trade Agreement (FTA) negotiations promptly. They voiced confidence in their teams’ ability to resolve outstanding issues and finalize a balanced, mutually beneficial agreement.
Meeting Starmer for the first time since he assumed office, Modi described their discussions as "highly productive." He affirmed India’s prioritization of its Comprehensive Strategic Partnership with the UK, stating on X (formerly Twitter), "In the years ahead, we look forward to working closely on technology, green energy, security, innovation, and more."
The India-UK FTA talks, initiated in January 2022, aim to strengthen economic ties by addressing high tariff barriers and opening access to India's vast market. Covering 26 chapters, including goods, services, investments, and intellectual property, the negotiations stalled in May 2023 after 14 rounds over two years, delayed by elections in both nations.
Efforts to finalize an agreement during the tenure of former UK Prime Minister Rishi Sunak fell short, despite his rapport with Modi. Significant challenges remain, including unresolved issues in goods, services, and investment, requiring Starmer to navigate complex negotiations.
Since assuming office in July, Starmer has prioritized economic growth, viewing a trade deal with India as a key milestone. According to 10 Downing Street, trade between the two nations was valued at £42 billion in the year to June 2024, with British exports accounting for about 40% of the total.