India, U.K. to re-launch trade talks in new year: Starmer

Britain’s Prime Minister Sir Keir Starmer attends a bilateral meeting with India’s Prime Minister Narendra Modi on the sidelines of the G20 summit at the Museum of Modern Art in Rio de Janeiro, Brazil.
| Photo Credit: Reuters

India and the U.K. have decided to re-launch discussions to conclude a ‘free trade’ deal in the new year, following the election of a new Labour government in the U.K.

The announcement of the imminent resumption of talks, which began in 2022 during the Boris Johnson Conservative government, was announced by U.K. Prime Minister Keir Starmer, following a bilateral meeting with Prime Minister Narendra Modi in Rio de Janeiro, on the fringes of the G20 Summit.

“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,” Mr. Starmer said. Bilateral trade between the two countries is valued at £42 billion (USD 53.2 billion) in the twelve months to June 2024, according to official UK data.

India and the U.K. have concluded most of the 26 chapters under discussion but talks have dragged on with over 14 rounds of trade talks which have outlasted two U.K. Prime Ministers (Mr. Johnson and Rishi Sunak). The last round of talks was held in March, after which India – and then the U.K. – went to the polls.

“India is the fifth largest economy in the world and a vital trading partner for the UK. We believe there is a good deal to be done here that works for both nations,” said U.K. Business and Trade Secretary Johnathan Reynolds.

The U.K. is seeking to deepen cooperation in areas education, security, technology and climate change, Downing Street said in a statement.

“They also welcomed the recent launch of the Technology Security Initiative, and discussed the opportunities for further cooperation on defence and security,” Downing Street said, adding that the prime ministers reaffirmed the strength of the cultural ties between the two countries as a basis for further cooperation.

Prime Minister Modi announced the opening of two consulates in Belfast and Manchester, the government said in its readout of the meeting. Mr Modi also brought up the issue of economic offenders.

India brings up Economic Offenders issue

“[The] Prime Minister noted the importance of addressing the issue of economic offenders from India in the U.K.. The two leaders also agreed on the need to make progress on issues related to migration and mobility,” the readout from New Delhi said.

The government has been seeking the extradition of businessman and former politician Vijay Mallya and diamond merchant Nirav Modi.

Both readouts refer to the India-U.K. Comprehensive Strategic Partnership but are silent on the ‘2030 Roadmap’, a pathway to deepening the relationship, agreed in 2021 by the Johnson and Modi governments. The Hindu reached out to Downing Street for comment on whether the Starmer government was committed to the Roadmap, but did not receive a response.