Britain's Prime Minister Keir Starmer announced the relaunch of the stalled free trade agreement talks with India and Britain will also seek a "new strategic partnership".
Statement by Starmer after his meeting with Prime Minister Narendra Modi on the sidelines of the G20 summit yesterday said: "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".
According to his office, "The UK will seek a new strategic partnership with India, including a trade agreement, as well as deepening co-operation in areas like security, education, technology, and climate change.".
PM Modi in a post on X said, "For India, the Comprehensive Strategic Partnership with the UK is of immense priority". "In the coming years, we are eager to work closely in areas such as technology, green energy, security, innovation, and technology. We also want to add strength to trade as well as cultural linkages", he added.
He termed his meeting with Starmer as "extremely productive". He had his first meeting with Starmer, who defeated Labour Prime Minister Rishi Sunak in July.
MEA said the two leaders were confident their negotiators would forge a "balanced, mutually beneficial and forward looking Free Trade Agreement". It said that India would be opening two new consulate generals – or deputy high commissions – in Belfast and Manchester to better serve the Indian diaspora.
It is mentioned that MEA also pointed out that PM Modi raised the thorny issue of alleged economic offenders from India living in Britain whom New Delhi wants extradited. Foremost among those India is seeking is Vijay Mallaya, the one-time high-flying liquor and airline entrepreneur, who has avoided extradition for several years. Others include diamond merchant Nirav Modi and cricket administrator Lalit Modi.
After Brexit- Britain's exit from the European Union, it has been focusing on extending economic ties with India and other nations. British Trade Secretary Jonathan Reynolds said, "Securing a deal is key to delivering this Government's core mission of driving economic growth".
Starmer's statement said, "The UK is committed to negotiating a trade deal with India – one of the fastest growing economies in the world". Talking to BBC, concerning some British priorities in a trade agreement, Reynolds mentioned that lowering Indian tariffs will help British firms export to this dynamic market. "Boosting investment which already supports over 600,000 jobs across both countries", is another, he said.
"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", he added "A deal with India would boost the UK's trading relationship, worth £42 billion ($53.22 billion) in the 12 months to June 2024", the prime minister's office said.
UK exports to India are worth £16.6 billion($19.77 billion)."
Trade talks between India and Britain had dragged on for several years and were dropped in March.
Since then, the government in Britain has changed with the Conservatives yielding to Labour, and PM Modi winning an election for a third term. One of the issues in those negotiations was increasing visas for students and businesspeople from India.
For Britain, it was lowering duties on whiskey and automobiles, and easier access to Indian markets for its service sector.
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