Rio De Janeiro: India and the UK will relaunch talks on a Free Trade Agreement (FTA) next year, Prime Minister Keir Starmer has announced after he held a bilateral meeting with his Indian counterpart Narendra Modi on the sidelines of the G20 Summit in Brazil.
Besides, the two countries agreed to work closely in the future in technology, green energy and innovation sectors to develop a comprehensive strategic partnership which is an “immense priority” for India, PM Modi said.
India-UK FTA talks to begin in 2025
Following the meeting between Modi and Starmer, Downing Street announced the UK’s intent to form a new strategic partnership with India that aims to include a trade agreement and enhanced collaboration in areas such as security, education, technology, and climate change.
Starmer’s spokesperson reaffirmed the UK’s commitment 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 mark a significant step in our mission to foster growth and opportunity across the country,” Starmer said in a statement released by Downing Street after the meeting.
Modi described the discussion as “extremely productive” in a social media post.
“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,” Modi said in a post on X.
Had an extremely productive meeting with Prime Minister Keir Starmer in Rio de Janeiro. 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,… pic.twitter.com/eJk6hBnDJl
— Narendra Modi (@narendramodi) November 18, 2024
“We also want to add strength to trade as well as cultural linkages,” he added.
India’s Ministry of External Affairs (MEA) stated that the bilateral meeting provided “fresh impetus to the India-UK Comprehensive Strategic Partnership.”
UK to reveal new trade strategy
Regarding India-UK trade discussions, Downing Street announced that the Department for Business and Trade (DBT) would soon release the government’s new trade strategy. This strategy will align with its industrial policy to guide future trade negotiations and foster long-term sustainable, inclusive, and resilient growth through trade.
India and the UK have been negotiating a Free Trade Agreement (FTA) since January 2022, though talks were paused earlier this year during general elections in both countries. Recent data shows the bilateral trade relationship was valued at GBP 42 billion in the 12 months to June. A successful FTA is expected to significantly increase this figure.
The Labour government in the UK is eager to emphasise a trade-friendly approach as part of its efforts to strengthen the domestic economy.
