Following his bilateral meeting with Prime Minister Narendra Modi at the G20 summit in Brazil, British Prime Minister Keir Starmer has announced that trade talks with India will resume in the new year.
Starmer and Modi met on the sidelines of a summit in Rio de Janeiro on Monday, after which Downing Street said the UK would seek a new strategic partnership with India, including trade deals and deepening cooperation in areas such as security, education, technology, etc. and climate change.
Starmer’s spokesman said the UK was committed to negotiating a trade deal with India, one of the world’s fastest-growing economies.
“The new trade deal with India will support jobs and prosperity in the UK – and represents a step forward in our mission to deliver growth and opportunity across the country,” Starmer said in a statement released by 10 Downing Street after the bilateral meeting.
A readout of the Starmer-Modi talks in London on Tuesday said the two leaders agreed to advance an ambitious UK-India comprehensive strategic partnership to take relations to new heights in trade and investment, security and defence, technology, climate, health. and education.
“As part of this they agreed to restart UK-India trade talks early next year. They also welcomed the recent launch of the Technology Security Initiative and discussed opportunities for further cooperation on defense and security,” a Downing Street spokesman said.
“The two leaders finally agreed on the strengthening of cultural ties between the two countries, which provides a solid foundation for further ongoing cooperation,” the spokesperson added.
Starmer later told X that his meeting with Modi was “very productive”. Earlier, Prime Minister Modi had described the exchange as “highly productive” in his post on X.
He said: “For India, a comprehensive strategic partnership with the UK is a top priority. In the coming years, we look forward to working closely in areas such as technology, green energy, security, innovation and technology.
“We also want to add strength to trade as well as cultural ties.” 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 shortly after Starmer’s meeting with Chinese President Xi Jinping and talks with Japanese Prime Minister Shigeru Ishiba and Australian PM Anthony Albanese.
On India-UK trade talks, Downing Street will soon unveil the government’s new trade strategy from the Department for Business and Trade (DBT) which will help inform all future trade negotiations aligned with its industrial strategy and achieve long-term sustainability, inclusiveness and resilience. will do Growth through trade.
“India is the fifth largest economy in the world and an important trading partner for the UK. We believe there is going to be a good deal here that works for both nations,” said Jonathan Reynolds, the UK’s trade and business secretary.
“Whether it’s reducing Indian tariffs to help British companies export to this dynamic market or boosting investment that already supports more than 600,000 jobs in both countries, a deal is vital to delivering this government’s key mission of driving economic growth,” he said. said.
India and the UK have been negotiating a Free Trade Agreement (FTA) since January 2022, after talks were paused during general elections in both countries earlier this year. According to the latest figures, bilateral trade relations were worth GBP 42 billion in the 12 months to June 2024, which is expected to grow significantly through the FTA.
A Labor Party government in the UK is keen to highlight a business-friendly message as a means of delivering a strong economy at home. DBT announced the Starmer-led government’s commitment to re-negotiate with all FTA partners immediately after winning the general election in July.
Since then, negotiations have opened 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 15 December.
While officials on the Indian side had expressed readiness to resume FTA talks from the stalled fourteenth round, the announcement of a new year start for talks is the first clear indication of a deadline from the British side.