Politics
UK-India trade talks to resume in the new year
Free trade negotiations between India and the UK will resume in the new year, Downing Street has announced.
The news comes after Sir Keir Starmer met Indian Prime Minister Narendra Modi at the G20 summit in Brazil.
A post-Brexit deal could open up valuable markets for British cars, Scotch whiskey and financial services worth billions of pounds, with India on track to become the world's third largest economy by 2050.
However, the UK has been stuck in more than one a dozen rounds of negotiations since 2022, with key sticking points around the relaxation of visa rules and reduced fees for Indian students and professionals traveling to the UK.
UK exports to India are worth 16.6 billion and trade relations with India were worth 42 billion in the 12 months to June 2024.
Sir Keir met world leaders at the two-day summit of the world's 20 biggest economies and is expected to unveil new trade and industrial strategies in the coming weeks.
He said the latest round of talks with India would focus on security, education, technology and climate change.
“Stimulating economic growth is essential to improving the living standards of workers,” he said.
“A new trade deal with India will support jobs and prosperity in the UK and represent a step forward in our mission to generate growth and opportunity across our country.”
Secretary of State for Business and Commerce Jonathan Reynolds described India as a “vital trading partner” and said he believed there was “a lot to do here” for both sides .
“Whether it is reducing Indian tariffs to help UK businesses export to this dynamic market or boosting investment which already supports more than 600,000 jobs in both countries, it is important to achieve a agreement to fulfill the main mission of this government, which is to stimulate economic growth,” he said.
The Labor government has been negotiating with Switzerland, South Korea and the Gulf Cooperation Council since their election victory in July.
The UK will also join trade negotiations on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in mid-December.
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