UK Prime Minister Keir Starmer announced that UK-India free trade talks will “relaunch” in the new year following his bilateral meeting with Prime Minister Narendra Modi at the G20 summit, per a statement from the UK government.

The UK will seek a new strategic partnership with India, including a trade agreement, as well as deepening of co-operation in areas like security, education, technology and climate change, it 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,” Starmer said in a statement issued after the bilateral talks with Modi.

From the scratch?

While many issues had already been settled since the India-UK FTA talks were launched by the Conservative-led government in early 2022 and both sides were looking at a speedy conclusion, it has to be seen whether the “relaunch” of talks, announced by Starmer, would entail taking a fresh look at all issues.

“All governments have their own priorities. The Labour government is grappling with the issues of unemployment, inflation and (declining) growth. One has to see what their stance would be on issues such as import duty cuts and work visa liberalisation,” an official tracking the mater said.

The meeting between Modi and Starmer on the sidelines of the G-20 Summit in Rio de Janeiro, Brazil, on Monday, was the first meeting between the two PMs, according to a release issued by the Ministry of External Affairs.

“Both leaders underlined the importance of resuming the FTA negotiations at an early date and expressed confidence in the ability of the negotiating teams, to address the remaining issues to mutual satisfaction, leading to a balanced, mutually beneficial and forward-looking FTA,” the release added.

Furthering pacts

India had been awaiting an announcement of resumption in the India-UK FTA talks by the new Labour Party that swept to power in the UK after ten years on July 5, since the visit of UK Foreign Secretary David Lammy to Delhi later in the month.

businessline recently reported that with after the UK Budget was delivered last month, Commerce Department officials were expecting the British team to get back to the negotiating table.

“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,” said Business and Trade Secretary Jonathan Reynolds.

The India-UK FTA talks were stuck on just a handful of issues, including market access for key items such as automobiles and Scotch, liberalisation of services including legal, banking and insurance and more visas for workers.

 “A deal with India would boost the UK’s trading relationship, worth £42 billion in the 12 months to June 2024. UK exports to India are worth £16.6 billion,” the UK government statement noted.

Expressing satisfaction at the progress in the bilateral relationship, the two PMs reaffirmed their commitment to strengthen the India-UK Comprehensive Strategic Partnership with a focus on economy, trade, new and emerging technologies, research and innovation, green finance and people-to-people contacts, the MEA stated.

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