Keir Starmer met Indian Prime Minister Narendra Modi at the G20 Summit in Brazil this week, his first in-person meeting since being elected UK Prime Minister in July.
Both leaders had a productive meeting in Rio de Janeiro, following which Downing Street announced that Britain will relaunch the stalled UK-India Free Trade Agreement (FTA) negotiations in the new year. There were several announcements from the Indian Ministry of External Affairs (MEA) too, including plans for the opening of new two new Consulates General of India in Belfast and Manchester, in light of growing bilateral ties and to better serve the British Indian community.
Soon after the meeting, Starmer said in a statement: “Boosting economic growth is key to improving living standards for working people.
“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.”
Downing Street went on to issue a readout of the Starmer-Modi talks, which highlighted that both leaders agreed to take forward an ambitious UK-India Comprehensive Strategic Partnership to take the relationship to “new heights in trade and investment, security and defence, technology, climate, health and education”.
Downing Street stated: “As part of this they agreed to relaunch UK-India trade talks early next year. They also welcomed the recent launch of the Technology Security Initiative, and discussed the opportunities for further cooperation on defence and security.
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“Finally both leaders agreed on the strength of cultural ties between the two countries, providing a strong foundation for further ongoing cooperation.”
In terms of the next steps towards the relaunch of FTA negotiations with India in 2025, the Department for Business and Trade (DBT) will soon unveil the Labour government’s new Trade Strategy, aligned with the Industrial Strategy, to help inform future trade talks and achieve long-term sustainable, inclusive and resilient growth through trade.
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.
"Whether it's lowering Indian tariffs to help British firms export to this dynamic market or boosting investment which already supports over 600,000 jobs across both countries, striking a deal is important to deliver this government's core mission of driving economic growth."
The UK-India FTA talks had been paused for elections in both countries and are now set to resume from Round 14 in the new year. A deal is intended to boost the bilateral trading relationship, currently worth £42 billion in the 12 months to June 2024.
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