India-UK FTA: Here’s What UK’s PM Said to PM Modi On FTA Talks in Rio

PM Modi in G20 Summit: UK Prime Minister Keir Starmer has announced that trade negotiations with India will resume in early 2024. The decision follows his bilateral meeting with Indian Prime Minister Narendra Modi on the sidelines of the G20 Summit in Brazil.  

Downing Street confirmed that the UK is seeking to establish a new strategic partnership with India, encompassing a trade agreement and expanded cooperation in key areas such as security, education, technology, and climate change.  

In a statement, Starmer reiterated the UK’s commitment to securing a trade deal with India, which he described as one of the world’s fastest-growing economies.  

“A trade deal with India will create jobs and prosperity in the UK, advancing our mission to deliver growth and opportunity across the country,” Starmer said, according to a Downing Street release.  

Strengthening Strategic Partnership  

Prime Minister Modi described the discussion as “extremely productive” in a social media post, emphasising the priority India places on its Comprehensive Strategic Partnership with the UK.  

“In the coming years, we are eager to work closely in areas such as technology, green energy, security, innovation, and trade. Strengthening cultural linkages is also a priority,” Modi said on X.  

India’s Ministry of External Affairs (MEA) echoed this sentiment, calling the meeting a source of “fresh impetus” for the partnership. “The leaders acknowledged the importance of a balanced and mutually beneficial Free Trade Agreement,” the MEA said in a post on X.  

Trade Talks on the Horizon  

Negotiations for an India-UK Free Trade Agreement (FTA), which began in January 2022, had been paused earlier this year due to elections in both countries. The resumption of talks in the new year marks a significant development, with the UK’s Department for Business and Trade (DBT) set to unveil a new trade strategy aligned with its industrial goals.  

Jonathan Reynolds, the UK Business and Trade Secretary, highlighted India’s economic significance. “India is the fifth-largest economy in the world and a vital trading partner for the UK. There is a strong potential for a deal that benefits both nations, whether by lowering tariffs or boosting investments that already support over 600,000 jobs across both countries,” he said.  

The bilateral trade relationship between India and the UK was valued at GBP 42 billion in the 12 months leading up to June 2024. An FTA is expected to significantly enhance this figure.  

Broader Diplomatic Engagements  

Starmer’s meeting with Modi came as part of broader engagements during the G20 Summit, where he also met Chinese President Xi Jinping, Japanese Prime Minister Shigeru Ishiba, and Australian Prime Minister Anthony Albanese.  

The Labour-led UK government has emphasised a trade-friendly approach to bolster the domestic economy. Since its election in July, the government has resumed trade negotiations with the Gulf Cooperation Council, Switzerland, and South Korea. It is also set to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership in December.  

Officials on the Indian side had already expressed readiness to resume negotiations from the stalled fourteenth round. The announcement of a 2024 relaunch provides the first clear indication of a timeframe from the UK.  

(With PTI inputs)