Britain’s Prime Minister Keir Starmer has announced the relaunch of the stalled talks for a Free Trade Agreement (FTA) with India and said Britain will also seek a “new strategic partnership”.
After his meeting with Prime Minister Narendra Modi on the sidelines of the G20 summit on Monday, Starmer 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”.
A statement from his office about their meeting said, “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.
PM Modi in a post on X said, “For India, the Comprehensive Strategic Partnership with the UK is of immense priority”. “In the coming years, we are eager to work closely in areas such as technology, green energy, security, innovation, and technology. We also want to add strength to trade as well as cultural linkages”, he added.
He called his meeting with Starmer “extremely productive”. This was his first meeting with Starmer, who was elected in July defeating Labour Prime Minister Rishi Sunak.
Ministry of External Affairs (MEA) said the two leaders were confident their negotiators would forge a “balanced, mutually beneficial and forward looking Free Trade Agreement”. It said that India would be opening two new consulate generals – or deputy high commissions – in Belfast and Manchester to better serve the Indian diaspora.
MEA also mentioned that PM Modi raised the thorny issue of alleged economic offenders from India living in Britain whom New Delhi wants extradited. Foremost among those India is seeking is Vijay Mallaya, the one-time high-flying liquor and airline entrepreneur, who has avoided extradition for several years. Others include diamond merchant Nirav Modi and cricket administrator Lalit Modi.
After Brexit – Britain’s departure from the European Union – it has sought to broaden economic relations with India and other countries. British Trade Secretary Jonathan Reynolds said, “Striking a deal (with India) is important to deliver this Government’s core mission of driving economic growth”.
Starmer’s statement said, “The UK is committed to negotiating a trade deal with India – one of the fastest growing economies in the world”. About the British priorities in a trade agreement, Reynolds mentioned “lowering Indian tariffs to help British firms export to this dynamic market”. “Boosting investment which already supports over 600,000 jobs across both countries”, is another, he 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”, he added “A deal with India would boost the UK’s trading relationship, worth £42 billion ($53.22 billion) in the 12 months to June 2024”, the prime minister’s office said.
“UK exports to India are worth £16.6 billion($19.77 billion).”
Trade talks between India and Britain had dragged on for several years and were dropped in March.
Since then, the government in Britain has changed with the Conservatives yielding to Labour, and PM Modi winning an election for a third term. One of the issues in those negotiations was increasing visas for students and businesspeople from India.
For Britain, it was lowering duties on whiskey and automobiles, and easier access to Indian markets for its service sector.
(IANS)