London: British Prime Minister Keir Starmer has revealed that trade negotiations with India will resume in the new year after his bilateral meeting with PM Modi at the G20 Summit in Brazil.
On Monday, British Prime Minister Keir Starmer and Indian Prime Minister Narendra Modi met on the sidelines of the G20 Summit in Rio de Janeiro. Following their meeting, 10 Downing Street announced that the UK aims to establish a new strategic partnership with India, which will include a trade deal and enhanced cooperation in sectors such as security, education, technology, and climate change.
A spokesperson for Starmer said that the UK is dedicated to negotiating a trade deal with India, one of the world’s fastest-growing economies.
“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 in a statement released by 10 Downing Street after the bilateral meeting.
A statement released in London on Tuesday following the Starmer-Modi talks confirmed that both leaders agreed to strengthen the UK-India Comprehensive Strategic Partnership, with a focus on enhancing trade and investment, security and defence, technology, climate, health, and education.
“As part of this they agreed to relaunch UK-India trade talks early next year. They also welcomed the recent launch of the Technology Security Initiative, and discussed the opportunities for further cooperation on defence and security,” a Downing Street spokesperson said.
“Finally both leaders agreed on the strength of cultural ties between the two countries, providing a strong foundation for further ongoing cooperation,” the spokesperson added.
Starmer then took to X to term his meeting with Modi as “a very productive.” Earlier, Prime Minister Modi describe the exchange as “extremely productive” on his post on X.
He said: “For India, the Comprehensive Strategic Partnership with the UK is of immense priority. In the coming years, we are eager to work closely in areas such as technology, green energy, security, innovation and technology.
“We also want to add strength to trade as well as cultural linkages.” Meanwhile, Downing Street highlighted that Starmer is using his trip to the G20 in Brazil to strengthen ties with the world’s leading economic powers to drive growth and deliver for the British people. It came soon after Starmer’s meeting with Chinese President Xi Jinping and talks with Prime Minister of Japan Shigeru Ishiba and Australian PM Anthony Albanese.
On India-UK trade talks, Downing Street revealed than the Department for Business and Trade (DBT) will soon unveil the government’s new Trade Strategy aligned with its Industrial Strategy to help inform all future trade negotiations and achieve long-term sustainable, inclusive and resilient growth through trade.
“India is the fifth largest economy in the world and a vital trading partner for the UK. We believe there is a good deal to be done here that works for both nations,” said UK Business and Trade Secretary Jonathan Reynolds.
“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,” he said.
India and the UK have been negotiating a Free Trade Agreement (FTA) since January 2022, with talks paused during general elections in both countries earlier this year. According to latest statistics, the bilateral trading relationship was worth GBP 42 billion in the 12 months to June 2024, expected to be significantly boosted by an FTA.
The Labour Party government in the UK is keen to highlight a trade friendly message as a means to deliver a strong economy at home. DBT had announced the Starmer-led government’s commitment to relaunching talks with all FTA partners soon after winning the general election in July.
Since then, negotiations have been kickstarted with the Gulf Cooperation Council, Switzerland and South Korea, with the UK also set to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on December 15.
While officials on the Indian side had expressed their readiness to resume FTA negotiations from the stalled fourteenth round, this announcement of a new year start for the talks is the first clear signal of a timeframe from the British side.
(with agency inputs)
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