London: UK Prime Minister Keir Starmer announced the resumption of Free Trade Agreement (FTA) negotiations with India early next year, following discussions with Indian Prime Minister Narendra Modi during the G20 Summit in Rio de Janeiro, Brazil.
In a statement, Downing Street emphasised the UK's commitment to forging a renewed strategic partnership with India, encompassing trade, security, education, technology, and climate change initiatives. The discussions are set to invigorate the stalled FTA talks, which began in 2022 but were interrupted by general elections in both nations earlier this year.
Starmer Emphasize Deal With India to be a significant Step For Growth And Oppurtunity in UK
Starmer underlined the importance of a trade agreement with India, noting its potential to bolster job creation and economic prosperity in the UK. “A new trade deal with India will be a significant step forward in delivering growth and opportunity across our country,” he said.
Indian Prime Minister Narendra Modi described the meeting as ‘extremely productive’ in a post on X (formerly Twitter). Highlighting the Comprehensive Strategic Partnership (CSP) with the UK as a top priority, Modi expressed optimism about collaboration in technology, green energy, and innovation, alongside strengthening trade and cultural ties.
UK Prime Minister Keir Starmer and PM Modi discuss
resuming India-UK FTA talks at G20 (Google image)
India's Ministry of External Affairs (MEA) echoed Modi's sentiments, describing the bilateral talks as a ‘fresh impetus’to the India-UK CSP. The ministry also noted that both leaders emphasised the need for a ‘balanced and mutually beneficial FTA.’
Bilateral Trade Relationship Between India, UK Valued at GBP 42 Billion As Of June
UK Business and Trade Secretary Jonathan Reynolds highlighted India’s economic significance, calling it a vital trading partner. He emphasised the potential benefits of the FTA, including reduced tariffs for British exports and increased bilateral investments, which currently support over 600,000 jobs across both countries.
Jonathan Reynolds said, “A deal that works for both nations is crucial to driving economic growth.”
The announcement follows Starmer’s meetings with global leaders, including Chinese President Xi Jinping, Japanese Prime Minister Shigeru Ishiba, and Australian Prime Minister Anthony Albanese, as part of his efforts to deepen ties with leading economies.
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The UK’s Department for Business and Trade (DBT) confirmed plans to unveil a new trade strategy aligned with its industrial goals to ensure sustainable and inclusive growth. The bilateral trade relationship between India and the UK was valued at GBP 42 billion as of June, with the FTA expected to substantially boost this figure.
This marks a significant step in the Labour government’s broader trade agenda, which includes negotiations with other key partners such as the Gulf Cooperation Council, Switzerland, and South Korea, and its imminent membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
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