A UK star meets with Prime Minister Narendra Modi to pursue a trade deal with India that Rishi Sunak was unable to accomplish.

According to UK Prime Minister Keir Starmer, a new trade agreement with India will boost employment and economic growth in the country.

Following a bilateral meeting with Prime Minister Narendra Modi at the G20 summit in Brazil, British Prime Minister Keir Starmer announced Monday that his government would resume trade negotiations with India.

"Building a robust domestic economy requires increasing trade overseas. According to a statement released by his office, "The UK is committed to negotiating a trade deal with India – one of the fastest growing economies in the world."

It further stated that the UK will work to strengthen collaboration in areas such as security, education, technology, and climate change, as well as pursue a new strategic partnership with India that includes a trade agreement.

A new trade agreement with India, according to Starmer, will boost UK employment and prosperity.
Following the bilateral discussion, Starmer was reported in a statement issued by 10, Downing Street, as stating, "Improving economic growth is key to improving living standards for working people." "A new trade agreement with India is a step forward in our mission to provide growth and opportunity throughout our nation and will support jobs and prosperity in the UK."

Both leaders emphasized the significance of starting the Free Trade Agreement (FTA) negotiations as soon as possible, according to a statement released by PM Modi's office.

Additionally, they expressed confidence in the negotiating teams' capacity to resolve the outstanding concerns to the satisfaction of both parties and produce a fair, advantageous, and forward-looking free trade agreement.

Modi called the meeting with the British prime minister "extremely productive." This was his first encounter with Starmer since taking office.

"The UK-India Comprehensive Strategic Partnership is a top priority for India. We are excited to collaborate closely in sectors like technology, green energy, security, and innovation in the upcoming years," Modi stated in a post on X.

India-UK free trade agreements
After 14 rounds of negotiations over two years, which were delayed by elections in India and the UK, the two countries' negotiations came to a standstill in May. Modi's close personal ties with former UK Prime Minister Rishi Sunak were thought to offer the best chance of signing an agreement, but they turned out to be elusive.

People close to both negotiation teams told Bloomberg before the discussions started that there were still obstacles to be addressed in the fields of goods, services, and investment, indicating that Starmer would have a difficult time reaching a consensus.

However, since taking office in July, Starmer has stated that his first priority is economic expansion. Reaching that goal includes deeper economic links with China and a trade pact with India.

According to Number 10 Downing Street, the UK's trade relationship with India was valued at £42 billion in the 12 months ending in June 2024, with British exports making up almost 40% of all trade.

Beginning in January 2022, the India-UK Free Trade Agreement (FTA) negotiations seek to strengthen economic connections by granting access to India's sizable and expanding market while avoiding high tariff barriers. Intellectual property rights, investments, goods, and services are all covered in the agreement's 26 chapters.