Rio de Janeiro: Britain's Prime Minister Keir Starmer has announced the revival of negotiations for a Free Trade Agreement (FTA) with India, set to begin in 2025. He also emphasized the goal of establishing a "new strategic partnership" between the two nations.
Starmer's comments followed a meeting with Prime Minister Narendra Modi during the G20 summit. He highlighted the benefits of a trade deal with India, stating, “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.”
A statement from Starmer’s office revealed plans to pursue not only a trade agreement but also closer cooperation in security, education, technology, and climate change.
Prime Minister Modi, in a post on X, expressed that India's Comprehensive Strategic Partnership with the UK is of great importance. He mentioned that in the coming years, India aims to strengthen ties in technology, green energy, security, innovation, and cultural connections. Modi described his first meeting with Starmer, who assumed office in July, as “extremely productive.”
The Ministry of External Affairs (MEA) stated that both leaders are confident their teams will negotiate a "balanced, mutually beneficial, and forward-looking Free Trade Agreement." Additionally, India plans to open new consulates in Belfast and Manchester to better engage with the Indian diaspora in the UK.
The meeting also addressed the matter of economic offenders from India residing in Britain whom New Delhi seeks to extradite. Among them is Vijay Mallya, a former business magnate, along with diamond merchant Nirav Modi and cricket administrator Lalit Modi.
Since Brexit, Britain's departure from the European Union, the UK has sought to strengthen economic ties with countries like India. British Trade Secretary Jonathan Reynolds highlighted the importance of securing a deal with India to drive economic growth. He mentioned that British priorities include reducing Indian tariffs to facilitate exports to India and encouraging investments that support over 600,000 jobs across both nations.
Starmer noted that India, as the fifth-largest economy globally, is a crucial trading partner for the UK, and he believes a beneficial deal can be achieved. His office mentioned that a trade agreement with India could enhance a trading relationship currently valued at £42 billion ($53.22 billion) as of June 2024. UK exports to India are estimated at £16.6 billion ($19.77 billion).
Trade discussions between India and the UK had stalled after several years and were paused in March. Changes in political leadership followed, with the Conservatives losing power to Labour in Britain and PM Modi securing a third term. Key points of negotiation included increasing visas for Indian students and businesspeople, while the UK focused on reducing tariffs on whiskey and cars and gaining better access for its services sector in Indian markets.
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