Prime Minister of the United Kingdom (UK), Keir Starmer, will resume free trade agreement talks between India and the UK by next year. 

“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 after a bilateral meeting with Indian PM Narendra Modi at the Group of 20 summit in Brazil. 

PM Modi said that he had a very productive meeting with Starmer and added that the strategic partnership with the UK is crucial. He added that they are eager to work closely in areas such as green energy, technology, and security. 

The Ministry of External Affairs (MEA) stated that both leaders emphasised the importance of resuming Free Trade Agreement (FTA) negotiations at the earliest opportunity, expressing confidence that the negotiating teams would resolve the remaining issues to mutual satisfaction.

Prime Minister Modi announced plans to establish two new Indian Consulates General in the UK, located in Belfast and Manchester.

He also raised the matter of extraditing Indian economic offenders in the UK, specifically Vijay Mallya and Nirav Modi. The MEA noted that both leaders agreed on the need to advance discussions related to migration and mobility.

FTA talks, which had stalled in May after 14 rounds spanning two years, were delayed due to elections in both nations. While the strong rapport between Modi and Sunak was seen as a key factor in potentially securing an agreement, it remains unresolved.

UK Prime Minister Starmer, who assumed office in July, has prioritised economic growth, with a trade deal with India and stronger economic ties with China being part of that strategy.

The UK’s trade relationship with India was valued at £42 billion in the 12 months leading up to June 2024, with British exports comprising approximately 40% of the total, according to Number 10 Downing Street.

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