Keir Starmer Pledges to Finalise UK-India FTA Beneficial for Both Nations

Britain's newly-elected Prime Minister Keir Starmer spoke with Prime Minister Narendra Modi on Saturday, expressing readiness to finalise a Free Trade Agreement (FTA) beneficial to both nations, according to Downing Street. India and the UK have been negotiating this FTA for over two years under a Conservative Party-led government. However, talks stalled during the 14th round due to general election cycles in both countries.

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The new Labour government, led by Starmer, which secured a landslide victory this week, is expected to resume these negotiations. "The Prime Minister [Starmer] said he looked forward to further deepening the strong and respectful relationship between both countries, and welcomed Prime Minister Modi’s leadership on key global challenges, such as climate change and economic growth," noted a spokesperson.

Focus on Strategic Partnership

In New Delhi, the Ministry of External Affairs (MEA) stated that both leaders recalled the historic relations between India and the UK. They reaffirmed their commitment to further deepen and advance the Comprehensive Strategic Partnership between the two nations. The MEA statement also mentioned that both sides agreed to work towards an early conclusion of a mutually beneficial India-UK FTA.

The leaders discussed the significance of the "living bridge" between their countries and the 2030 Roadmap. They agreed on the importance of cooperation in various areas such as defence and security, critical and emerging technology, and climate change. "Discussing the Free Trade Agreement, the Prime Minister said he stood ready to conclude a deal that worked for both sides. The leaders hoped to meet at the earliest opportunity," added the spokesperson.

Political Turmoil and Commitment

Since January 2022, when Boris Johnson was the British Prime Minister, both sides have been working towards enhancing their GBP 38.1 billion bilateral trading partnership. However, political turmoil in the UK led to a short-lived Liz Truss premiership followed by Rishi Sunak as Britain's first prime minister of Indian heritage.

The Labour Party’s election manifesto for Thursday's polls committed to clinching the deal. It stated: "We will seek a new strategic partnership with India, including an FTA, as well as deepening cooperation in areas like security, education, technology and climate change." This commitment reflects Labour's determination to strengthen ties with India.

Future Plans and Visits

Prime Minister Modi congratulated Starmer on his remarkable victory and invited him for an early visit to India. Both leaders agreed to remain in touch, according to the MEA statement. The new Foreign Secretary, David Lammy, expressed his intention to "finish the job" on the FTA and plans to visit India within his first month in office.

"My message to [Finance] Minister Sitharaman and [Trade] Minister Goyal is that Labour is ready to go. Let’s finally get our free trade deal done and move on," Lammy said at the India Global Forum in London last week. This statement underscores Labour's eagerness to finalise the agreement swiftly.

The leaders' discussions highlighted their shared vision for future cooperation across various sectors. Both sides are keen on advancing their strategic partnership while addressing global challenges together. This renewed focus aims to benefit both nations economically and strategically.