India and the UK decided to resume negotiations on the Free Trade Agreement at an early date, during talks between Prime Minister Narendra Modi and his UK counterpart Keir Starmer on the sidelines of the G20 Summit in Rio de Janeiro.
It was the first meeting between PM Modi and UK PM Keir Starmer who took office in July this year after the Labour Party won the elections.
During the meeting, Prime Minister Modi announced the establishment of two new Consulates General of India in the UK — in Belfast and Manchester. Prime Minister Starmer welcomed the announcement.
At the start, PM Modi congratulated PM Starmer on his assumption of office. The UK PM also extended warm wishes to Prime Minister Modi on his historic third term in office.
Expressing satisfaction at the progress in the bilateral relationship, the two Prime Ministers reaffirmed their commitment to strengthen the India-UK Comprehensive Strategic Partnership with a focus on economy, trade, new and emerging technologies, research and innovation, green finance and people-to-people contacts. They exchanged views on issues of mutual interest, including on international and regional issues of significance, a statement said.
Both leaders underlined the importance of resuming the Free Trade Agreement negotiations at an early date and expressed confidence in the ability of the negotiating teams, to address the remaining issues to mutual satisfaction, leading to a balanced, mutually beneficial and forward looking Free Trade Agreement.
Recognizing the ample opportunities for further engagement between the two sides in the light of growing bilateral economic and business relations and with a view to better serve the consular requirements of the Indian community in the United Kingdom, PM Modi announced the establishment of two new Consulates General of India in Belfast and Manchester.
In a reference to the fugitive Indian businessmen in the UK – Nirva Modi and Vijay Mallya – and India’s efforts to extradite them, the statement said: “Prime Minister Modi noted the importance of addressing the issue of economic offenders from India in the UK. The two leaders also agreed on the need to make progress on issues related to migration and mobility.”
The two leaders directed their Ministers and senior officials to work towards faster implementation of the various understandings that form part of the India-UK Comprehensive Strategic Partnership. They also looked forward to more frequent dialogue and discussions, the statement added.
A statement from the UK Prime Minister’s office said:
“Prime Minister Starmer has announced that UK-India trade talks will relaunch in the new year, following a bilateral meeting with Prime Minister Narendra Modi at the G20 summit.
“Boosting trade abroad is essential to delivering a strong economy at home. The UK is committed to negotiating a trade deal with India – one of the fastest growing economies in the world.
“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.
“The Business and Trade Secretary announced the UK’s commitment to relaunching talks with Free Trade Agreement partners in July. Since then, negotiations have been kickstarted with the Gulf Cooperation Council, Switzerland and South Korea. The UK is also set to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on December 15.
Prime Minister Starmer is using his trip to the G20 in Brazil to strengthen ties with the world’s leading economic powers to drive growth and deliver for the British people at home.
Prime Minister Keir Starmer said: “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.”
Business and Trade Secretary Jonathan Reynolds 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.
“Whether it’s lowering Indian tariffs to help British firms export to this dynamic market or boosting investment which already supports over 600,000 jobs across both countries, striking a deal is important to deliver this Government’s core mission of driving economic growth.”
A deal with India would boost the UK’s trading relationship, worth pounds 42 billion in the 12 months to June 2024. UK exports to India are worth pounds 16.6 billion.
