UK Prime Minister Keir Starmer announced on Monday that his government intends to resume trade talks with India, following a bilateral meeting with Prime Minister Narendra Modi at the G20 summit in Brazil.Starmer emphasized the importance of boosting international trade for strengthening the UK economy. “The UK is committed to negotiating a trade deal with India – one of the fastest growing economies in the world,” said a statement from his office. He added that a new trade deal would bolster jobs and prosperity in the UK, supporting economic growth and improving living standards.
Strategic Partnership and Key Areas of Cooperation
In addition to trade, the UK aims to form a new strategic partnership with India, focusing on key areas such as security, technology, education, and climate change. “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 stated.
Resumption of Free Trade Agreement (FTA) Negotiations
Both leaders agreed on the importance of resuming the Free Trade Agreement (FTA) talks as soon as possible. According to a statement from Modi’s office, the two expressed confidence in the ability of negotiating teams to resolve outstanding issues and reach a mutually beneficial agreement.
Modi described the exchange as “extremely productive,” highlighting that India considers its Comprehensive Strategic Partnership with the UK a top priority. He expressed eagerness to collaborate in areas like technology, green energy, security, and innovation in the coming years.
Challenges in FTA Talks
The FTA negotiations between India and the UK stalled in May 2024 after 14 rounds of talks over two years, due to elections in both countries. The strong relationship between Modi and former UK Prime Minister Rishi Sunak was thought to be crucial for finalizing the deal, but an agreement remained elusive.
Although previous rounds encountered challenges in areas like goods, services, and investment, Starmer, who assumed office in July, remains committed to economic growth as his primary objective. A trade deal with India is part of his plan to strengthen the UK’s economy, alongside increasing economic ties with China.
Trade Value and FTA Goals
The UK’s trade relationship with India was valued at £42 billion in the 12 months to June 2024. British exports made up about 40% of total commerce between the two nations. The ongoing negotiations, which started in January 2022, aim to enhance economic ties by providing access to India’s large market and reducing tariff barriers. The agreement would cover 26 chapters, including goods, services, investments, and intellectual property rights.
Read More : Elon Musk Frustrates Trump Inner Circle After Accusing MAGA Loyalist Of…
