Prime Minister Narendra Modi and his UK counterpart, Keir Starmer, held bilateral talks on Tuesday on the sidelines of the Brazil G20 Summit. The discussions focused on India-UK trade talks, technology partnerships, and the extradition of fugitive Indian economic offenders, among other key issues.
During the summit, it was announced that India-UK trade talks will resume in the new year, with renewed efforts aimed at finalising a free trade agreement (FTA) that could significantly strengthen economic ties between the two nations by early next year.
The proposed FTA aims to unlock substantial opportunities for both sides, with the UK eyeing access to India’s growing markets for British cars, Scotch whisky, and financial services. India, poised to become the world’s third-largest economy by 2050, seeks reduced visa restrictions and lower fees for students and professionals.
Previous Challenges and Future Focus
Negotiations for the India-UK trade deal began in January 2022 but have faced hurdles, including high tariffs on British whisky and India’s demand for increased visas. Despite these challenges, both leaders expressed optimism about reaching a mutually beneficial agreement.
Prime Minister Starmer emphasized the importance of the deal for economic growth, stating, “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.”
Indian Prime Minister Modi described the meeting as “extremely productive,” highlighting opportunities in technology, green energy, and cultural ties. He also announced plans to establish two new Indian consulates in Belfast and Manchester, further strengthening bilateral relations.
Expanding Partnerships
Business Secretary Jonathan Reynolds called India a “vital trading partner,” noting that trade between the two countries was worth £42 billion in the year to June 2024, with UK exports valued at £16.6 billion. Reynolds added, “Striking a deal is important to deliver this government’s core mission of driving economic growth.”
The renewed talks will focus on critical areas such as security, education, technology, and climate change, alongside addressing remaining trade barriers. Both leaders also underscored the importance of addressing migration and mobility issues to enhance people-to-people connections.
Outlook for 2024
With the UK also pursuing trade negotiations with other partners, including the Gulf Cooperation Council and joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the India-UK FTA remains a priority.
As negotiations resume, the commitment from both sides reflects a shared vision for a balanced, forward-looking agreement that benefits both nations and strengthens their comprehensive strategic partnership.
Meanwhile, a ‘Global Alliance Against Hunger and Poverty’ was launched at the G20 Summit in Rio de Janeiro. The alliance was announced by Brazilian President Luiz Inácio Lula da Silva and represents a collaborative effort involving the African Union, European Union, and international humanitarian organizations. Prime Minister Narendra Modi expressed India’s support for the initiative.
LOGISTIC MARKET | Logistics Robots Market to Hit $21.01 Billion by 2029
