UK and India to Resume Free Trade Negotiations in New Year

Free trade discussions between the United Kingdom and India are set to recommence in the upcoming year, Downing Street has confirmed. This announcement follows a meeting between Sir Keir Starmer and Indian Prime Minister Narendra Modi during the G20 summit held in Brazil. Such an agreement, following Brexit, has the potential to open up significant markets for British automobiles, Scottish whisky, and financial services, potentially generating billions of pounds. India is projected to become the world’s third-largest economy by 2050. Despite this potential, the UK has engaged in over twelve negotiation rounds since 2022, encountering primary obstacles related to easing visa regulations and reducing fees for Indian students and professionals seeking entry to the UK. Exports from the UK to India currently stand at £16.6 billion, and the overall trade relationship between the two nations reached £42 billion in the twelve-month period preceding June 2024. During the two-day summit involving the twenty largest global economies, Sir Keir has held discussions with various world leaders. He is anticipated to present new trade and industrial strategies in the forthcoming weeks. He stated that the forthcoming discussions with India will concentrate on areas such as security, education, technology, and climate change. He remarked, “Boosting economic growth is key to improving living standards for working people.” He added, “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.” Jonathan Reynolds, the Business and Trade Secretary, characterized India as a “vital trading partner” and expressed his conviction that “a good deal to be done here” exists for both parties. He further stated, “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.” Since its election victory in July, the Labour government has been engaged in negotiations with Switzerland, South Korea, and the Gulf Cooperation Council. Additionally, the UK is scheduled to participate in trade discussions for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in mid-December. Copyright 2024 BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking.