Free trade talks between India and the UK will be relaunched in the new year, according to a Downing Street announcement.
The news is coming after Sir Keir Starmer met with Indian prime minister Narendra Modi at the G20 summit in Brazil.
A post-Brexit deal could very well unlock valuable markets for British cars, Scottish whisky, and financial services valued at billions of pounds, with India on course to become the third largest economy in the world by 2050.
However, the UK has been locked in over a dozen rounds of negotiations since 2022, with key sticking points around relaxing visa rules and lowering tuition fees for Indian students and professionals going to the UK.
UK exports to India are worth £16.6 billion and the trading relationship with India was worth £42 billion in the 12 months before June 2024.
Over the two-day summit of the 20 biggest global economies, Keir has been meeting with world leaders and is expected to unveil new trade and industrial strategies in the coming weeks.
He said the latest round of talks with India will concentrate on security, education, technology, and climate change.
“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.” Keir had said.
Additionally, Business and trade secretary, Jonathan Reynolds described India as a “vital trading partner”, saying he believed there is “a good deal to be done here” for both sides.
“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,” he remarked.
The UK Labour government has been negotiating with Switzerland, South Korea and the Gulf Cooperation Council since their election victory in July and is scheduled to join trade talks for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in mid-December.
