NEW DELHI: Stalled Free Trade Agreement (FTA) negotiations between India and the United Kingdom, anticipated to enhance the estimated GBP 42 billion annual bilateral trade relationship, are set to be relaunched early next year.
British PM Keir Starmer made the announcement during his address to the UK Parliament, following his participation in the G20 Summit in Brazil where he held a bilateral meeting with PM Modi.
“We agreed to raise the ambition of our UK-India comprehensive strategic partnership, covering security, defence, technology, climate, health, and education,” Starmer told Members of Parliament. “Crucially, this work will start with trade and investment, and I am pleased to say that we agreed to relaunch Free Trade Agreement negotiations early in the new year.”
The FTA talks, which began in January 2022, had been paused during their 14th round due to general elections in both countries. With the Labour Party now at the helm in the UK, the discussions will pick up under a new government.
The bilateral meeting between PM Modi and Starmer in Rio de Janeiro marked their first engagement since Starmer assumed office. Both leaders expressed optimism about resolving outstanding issues to create a balanced and mutually beneficial FTA.
A statement from the UK soon after the meeting 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.”
FTA will pave the way for greater collaboration in areas like technology, climate change, and education along with strengthening economic ties.
India’s commerce and industry ministry has confirmed that talks will resume based on the progress made during previous rounds, with both sides seeking to bridge gaps and expedite the finalization of the agreement.