UK-India Free Trade Agreement negotiations to resume in early 2024
London: Negotiations for a Free Trade Agreement (FTA) between the UK and India, expected to significantly enhance the current GBP 42 billion annual bilateral trade relationship, will resume early next year, British Prime Minister Keir Starmer said in his country’s Parliament.
The announcement followed Starmer's statement to the House of Commons on Thursday, where he briefed MPs on his participation in the G20 Summit in Brazil, PTI reported
During the summit, he had a “good discussion” with Indian Prime Minister Narendra Modi, resulting in an agreement to resume the election-stalled FTA talks.
Renewing a comprehensive strategic partnership
Highlighting the discussions with Modi, Starmer said: "I had a good discussion with Prime Minister Modi about deepening our bilateral ties. We agreed to raise the ambition of our UK-India comprehensive strategic partnership, covering security, defence, technology, climate, health, and education, building on the unique bonds and cultural ties between our two countries."
He emphasized that trade and investment would form the foundation of this renewed partnership, adding, "I am pleased to say that we agreed to relaunch Free Trade Agreement negotiations early in the new year."
The talks, which began in January 2022, had reached the 14th round before pausing due to general elections in both countries. They will now resume under Starmer's Labour-led administration, which has taken over from the previous Conservative government.
Economic impact and opportunities
Speaking at the G20 Summit in Rio de Janeiro, Starmer underlined the economic importance of the FTA:
"Boosting economic growth is key to improving living standards for working people. 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."
Jonathan Reynolds, the UK’s Business and Trade Secretary, echoed the sentiment, calling India a “vital trading partner.” He added, “India is the fifth-largest economy in the world, and we believe there is a good deal to be done here that works for both nations.”
Progress and next steps
According to the UK India Business Council (UKIBC), a significant number of FTA chapters have already been discussed during the 13 rounds of negotiations, said the report.
India’s Commerce and Industry Ministry stated that discussions would resume from the progress already achieved, aiming to bridge remaining gaps and conclude the deal expeditiously.
In the UK, the Department for Business and Trade is set to launch a new Trade Strategy aligned with its Industrial Strategy, focusing on sustainable, inclusive, and resilient growth through trade.
The resumption of FTA negotiations signals renewed momentum for deeper economic ties between the two nations, with both governments expressing optimism about achieving a mutually beneficial agreement.
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