British Prime Minister Keir Starmer said Monday that his government would reopen trade discussions with India after meeting with Modi at the G20 summit in Brazil.
Trade abroad is crucial to a robust domestic economy. According to a statement from his office, the UK is enthusiastic about negotiating a trade pact with India, a rapidly rising economy.
It said that the UK will seek a new strategic partnership with India, including a trade pact, and strengthen security, education, technology, and climate change collaboration.
Following the bilateral discussion, 10, Downing Street paraphrased Starmer as saying, “Boosting economic growth is important to improving living conditions for working people.” “A new trade deal with India will promote UK employment and prosperity and forward our objective to deliver growth and opportunity across our country.”
Prime Minister Modi’s office stated both leaders stressed the need of beginning FTA negotiations shortly.
They also trusted the negotiating teams to resolve the outstanding issues and reach a balanced, mutually beneficial, and forward-looking Free Trade Agreement.
In his first meeting with Starmer since taking office, Modi called the conversation “very constructive”.
For India, the Comprehensive Strategic Partnership with the UK is crucial. We hope to collaborate in technology, green energy, security, innovation, and technology in the future “Modi wrote on X.
India-UK FTA talks
Political elections in India and the UK halted negotiations between the two nations after 14 rounds over two years in May. Modi and ex-UK PM Rishi Sunak’s close friendship was the best chance of reaching a deal, but it failed.
Close to both negotiating teams told Bloomberg there were still difficulties in goods, services, and investment areas before discussions paused, suggesting Starmer will have his work cut out finding agreement.
Even though Starmer took office in July, he has claimed economic growth is his top priority. That goal includes a trade pact with India and closer economic relations with China.
Britain exported 40% of India’s £42 billion trade in the year to June 2024, Downing Street said.
In January 2022, India-UK Free Trade Agreement (FTA) negotiations began to improve economic links by circumventing high tariff barriers to India’s big and rising market. Goods, services, investments, and IP rights are covered in 26 chapters.
