May 27, 2025 2:37 pm
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Britain-India Free Trade Talks Relaunch Set for 2025: UK PM Keir Starmer

Starmer and Modi Commit to Strengthened Strategic Partnership

Rio de Janeiro: UK Prime Minister Keir Starmer announced the relaunch of talks for a free trade agreement (FTA) with India, signaling renewed efforts to deepen economic ties and forge a “new strategic partnership.” The announcement followed his first meeting with Indian Prime Minister Narendra Modi on the sidelines of the G20 Summit on Monday.

“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,” Starmer said.

Focus on Trade, Technology, and Cooperation

According to a statement from Starmer’s office, the UK will pursue an FTA and explore enhanced collaboration in key areas such as security, technology, education, climate change, and green energy. Modi echoed this sentiment, calling the meeting “extremely productive” and emphasizing India’s commitment to strengthening the Comprehensive Strategic Partnership with the UK.

“In the coming years, we are eager to work closely in areas such as technology, green energy, security, and innovation,” Modi wrote on X (formerly Twitter). “We also want to add strength to trade as well as cultural linkages.”

India to Open New Consulates in Belfast and Manchester

The Ministry of External Affairs (MEA) announced that India will open two new consulates in Belfast and Manchester to better serve the Indian diaspora. Both leaders expressed confidence in their negotiators’ ability to create a “balanced, mutually beneficial, and forward-looking” trade agreement.

The MEA also mentioned that Modi raised the issue of Indian economic offenders living in the UK, including high-profile figures such as Vijay Mallya, Nirav Modi, and Lalit Modi, whose extradition India has long sought.

Post-Brexit Strategy and Economic Priorities

Following Brexit, Britain has been seeking to diversify its trade relationships. UK Trade Secretary Jonathan Reynolds emphasized the importance of a deal with India, one of the fastest-growing economies in the world, stating that it aligns with the UK’s mission of driving economic growth.

“India is the fifth-largest economy and a vital trading partner. A deal with India would boost the UK’s trading relationship, currently worth £42 billion ($53.22 billion) in the 12 months to June 2024,” Reynolds said.

Key Negotiation Points

For the UK, key objectives include reducing tariffs on whiskey, automobiles, and services, as well as increasing investment in India, which already supports over 600,000 jobs across both nations. On the other hand, India seeks to secure more visas for students and business professionals.

A Renewed Chapter in UK-India Relations

Trade talks between the two nations had stalled in March after dragging on for years, with disagreements over tariffs and visas. With new leadership in both countries—Starmer’s Labour government in the UK and Modi’s third-term administration in India—the renewed negotiations mark a fresh chapter in UK-India relations.

“A good deal can be struck that works for both nations,” Reynolds said, highlighting the potential economic benefits of an FTA for both countries.

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