London (Parliament Politics Magazine) – British Prime Minister Keir Starmer has announced that free trade talks with India will be relaunched in the new year, following a bilateral meeting with his Indian counterpart Narendra Modi after meeting at the G20 summit in Rio.
The meeting centred on negotiating a trade agreement, building a new strategic partnership and enhancing cooperation in security, education, technology and climate change.
A post-Brexit deal could offer Britain access to valuable markets for its cars, Scottish whisky, and financial services, tapping into billions of pounds in opportunities as India races toward becoming the third-largest economy globally by the year 2050.
New trade agreement and strategic partnership
The UK has been engaged in over a dozen rounds of negotiations since 2022, with important issues remaining unresolved particularly the relaxation of visa regulation and fee reductions for Indian students and professionals wishing to study in the UK.
According to Downing Street, the UK is committed to a trade agreement with India, one of the rapidly growing global economies. Sir Keir Starmer pointed out that such a trade deal with India would benefit UK jobs and economic growth, while Indian Prime Minister Modi called the meeting “extremely productive”, highlighting the significance of a Comprehensive Strategic partnership.
Modi posted on X and described the meeting as productive, stating “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”.
He added, “We also want to add strength to trade as well as cultural linkages”.
Starmer’s spokesperson said, “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”.
India’s Ministry of External Affairs (MEA) also stated that the bilateral meeting at the G20 summit was a “fresh impetus to the India-UK Comprehensive Strategic Partnership”.
MEA tweeted on X about the meeting at the G20 summit, “Prime Minister Narendra Modi met Prime Minister Keir Starmer of the UK on the sidelines of the G20 Brazil Summit in Rio. The leaders discussed various facets of the India-UK Comprehensive Strategic Partnership. They also acknowledged the need for a balanced and mutually beneficial FTA”.
Downing Street also said in a statement that Sir Keir Starmer is using his Brazil trip for the G20 SUmmit to build strong ties with the world’s economic leaders to deliver benefits to Britons.
Starmer’s meeting with Indian PM Modi was held after his discussion with Chinese President Xi Jinping and negotiations with Japan’s Prime Minister Shigeru Ishiba and Australian Prime Minister Anthony Albanese.
The Department for Business and Trade is preparing to launch the government’s new trade strategy, Downing Street confirmed.
India’s diplomatic expansion in the UK
During the G20 summit meeting, Prime Minister Modi informed his UK counterpart that India is ready to open two Consulates General of India in the UK’s Belfast and Manchester.
Britain’s Ministry of External Affairs stated in a statement “Recognizing the ample opportunities for further engagement between the two sides in the light of growing bilateral economic and business relations and with a view to better serve the consular requirements of the Indian community in the United Kingdom, Prime Minister Modi announced the establishment of two new Consulates General of India in the United Kingdom in Belfast and Manchester. Prime Minister Starmer welcomed the announcement”.
UK’s new trade strategy and global commitment
UK Business and Trade Secretary, Jonathan Reynolds said “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”.
He added, “Whether it’s lowering Indian tariffs to help British firms export to this dynamic market or boosting investment which already supports over 6,00,000 jobs across both countries, striking a deal is important to deliver this government’s core mission of driving economic growth”.
After Labour’s party victory in the July general elections, Starmer’s government has planned to relaunch discussions with all FTA partners. Dialogues have already been initiated with the Gulf Cooperation Council, Switzerland and South Korea.
The UK is set to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in mid-December.
Meanwhile, Indian officials had expressed their willingness to continue FTA conversations from the suspended fourteenth round, the British announcement to kick off talks in the new year is the first clear indication of a timeline from the UK.