November 19, 2024: Prime Minister Keir Starmer has confirmed that the United Kingdom and India will relaunch negotiations for a free trade agreement (FTA) in 2025, marking a renewed push to strengthen economic ties between the two countries. The announcement came after a productive meeting between Starmer and Indian Prime Minister Narendra Modi on the sidelines of the G20 summit in New Delhi on Monday.
Starmer described the upcoming trade deal as a critical step toward fostering prosperity and growth in the UK. “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,” he said in a statement following the meeting.
The British Prime Minister also emphasized that the trade agreement is just one component of a broader effort to establish a "new strategic partnership" with India. The partnership will focus on areas including security, education, technology, and climate change. Both leaders expressed their commitment to deepening bilateral cooperation across these sectors.
In a post on social media platform X, Prime Minister Modi underscored the importance of the UK-India relationship. "For India, the Comprehensive Strategic Partnership with the UK is of immense priority,” he wrote. He highlighted key areas for collaboration, including technology, green energy, innovation, and trade. “We also want to add strength to trade as well as cultural linkages,” Modi added, describing the discussions with Starmer as "extremely productive."
The two leaders also agreed that negotiators would work towards a “balanced, mutually beneficial, and forward-looking” Free Trade Agreement (FTA). India’s Ministry of External Affairs (MEA) announced that, as part of the strengthening of ties, India would open two new consulates in Belfast and Manchester to better serve the growing Indian diaspora in the UK.
One of the more sensitive topics raised during the meeting was the issue of alleged economic offenders from India residing in the UK. India has long sought the extradition of several high-profile figures, including liquor magnate Vijay Mallya and diamond merchant Nirav Modi, both of whom are accused of financial crimes. PM Modi reportedly pressed Starmer on the matter, with the British government yet to make significant progress on these extradition requests.
Following the meeting, British Trade Secretary Jonathan Reynolds stressed the importance of securing a trade deal with India, which is one of the fastest-growing economies in the world. Reynolds pointed out that the UK’s departure from the European Union (Brexit) had created a need for the country to diversify its trade relationships, with India representing a key part of that strategy.
A comprehensive trade agreement with India, he said, could open up new opportunities for British businesses. “Lowering Indian tariffs to help British firms export to this dynamic market and boosting investment, which already supports over 600,000 jobs across both countries, are key priorities for us,” Reynolds said.
The UK’s trade with India is already significant, with exports to India valued at £16.6 billion ($19.77 billion) in the 12 months to June 2024. The total value of UK-India trade stands at £42 billion ($53.22 billion), making India the UK's fifth-largest trading partner globally.
Despite previous setbacks, including the suspension of talks in March 2024, the two leaders expressed confidence that the new round of negotiations would yield a fair and mutually advantageous agreement. The UK government has long sought to deepen economic ties with India post-Brexit as part of its broader strategy to build stronger global trade relationships outside the European Union.