UK Prime Minister Keir Starmer Confirms Relaunch of FTA Talks with India for Early 2025

The Free Trade Agreement (FTA) discussions between India and the UK are set to resume early next year, aiming to enhance the GBP 42-billion annual trade relationship. Prime Minister Keir Starmer announced this in the UK Parliament, following his G20 Summit visit to Brazil. During the summit, he had a "good discussion" with Prime Minister Narendra Modi, leading to an agreement to restart the previously stalled FTA talks.

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The FTA negotiations had paused during their 14th round due to election cycles in both countries. Initially started under a Conservative government, these talks will now continue under the Labour-led administration in the UK. Starmer emphasised that boosting economic growth is crucial for improving living standards and that a new trade deal with India would support jobs and prosperity in the UK.

Strategic Partnership Focus

Starmer highlighted plans to elevate the UK-India comprehensive strategic partnership. This partnership spans various sectors, including security, defence, technology, climate, health, and education. He noted that trade and investment would be the starting point for this enhanced collaboration. "We agreed to raise the ambition of our UK-India comprehensive strategic partnership," he stated.

The UK India Business Council (UKIBC) has been involved in discussions across departments in both governments throughout 13 negotiation rounds. A significant number of chapters have already been covered for the FTA. The UK's Department for Business and Trade (DBT) is preparing to introduce a new Trade Strategy aligned with its Industrial Strategy. This aims to guide future trade negotiations towards sustainable and inclusive growth.

Economic Significance

Business and Trade Secretary Jonathan Reynolds remarked on India's importance as a trading partner, being the fifth largest economy globally. He expressed optimism about reaching a beneficial agreement for both nations. "We believe there is a good deal to be done here that works for both nations," Reynolds said.

The Commerce and Industry Ministry in New Delhi confirmed that discussions would resume from where they left off. Both sides aim to bridge existing gaps swiftly to finalise the trade deal. The renewed negotiations reflect a commitment to building on previous progress and achieving mutual economic benefits.

Starmer's meeting with Modi was his first since assuming office at 10 Downing Street. He reiterated that enhancing economic ties with India is part of a broader mission to deliver growth and opportunity across the UK. The relaunch of FTA talks signifies a step forward in strengthening bilateral relations between the two countries.