India and the UK will resume talks on a commerce deal early subsequent 12 months to deal with the remaining points and finalise a balanced and forward-looking free commerce settlement (FTA) following a pause of a number of months on account of elections in each international locations.
Prime Minister Narendra Modi and his British counterpart Keir Starmer agreed on resuming negotiations for the commerce deal at their assembly on the margins of the G20 Summit in Rio de Janeiro on Monday. This was the primary assembly between Modi and Starmer, who assumed workplace in July.
Modi additionally raised the problem of extraditing financial offenders wished by India with Starmer, and introduced that two new Indian consulates will probably be established in Belfast and Manchester to drive financial and enterprise ties. It will take the entire variety of Indian consulates within the UK to 5.
In a put up on X, Modi mentioned he had an “extraordinarily productive assembly” with Starmer. “For India, the excellent strategic partnership with the UK is of immense precedence. Within the coming years, we’re desperate to work intently in areas comparable to know-how, inexperienced power, safety, innovation and know-how. We additionally wish to add power to commerce in addition to cultural linkages,” he mentioned.
Starmer too described the assembly as very productive in a put up on X, and mentioned the 2 sides had introduced “plans to relaunch UK-India commerce talks”. He added, “A brand new commerce deal will help jobs and prosperity within the UK – and signify a step ahead in our mission to ship development and alternative throughout the nation.”
The exterior affairs ministry mentioned in a readout that the 2 leaders “underlined the significance of resuming the free commerce settlement negotiations” and expressed confidence of their negotiating groups to “tackle the remaining points to mutual satisfaction, resulting in a balanced, mutually useful and forward-looking” deal.
A Downing Road spokesperson mentioned the leaders “agreed to relaunch UK-India commerce talks early subsequent 12 months” as a part of measures to take ahead the excellent strategic partnership in commerce, funding, safety, defence, know-how, local weather, well being and schooling.
The 2 sides started discussions on the FTA in January 2022 and the 14th spherical of talks began in January this 12 months. The discussions have been paused due to common elections in each international locations, which noticed Modi securing a 3rd time period in June and the emergence of a brand new Labour Social gathering authorities beneath Starmer in July. Earlier than the pause in talks, negotiators from the 2 sides have been in contact on key excellent points such because the UK’s demand for tariff concessions for vehicles, together with EVs, and Scotch whisky, and India’s name for simpler visa norms for professionals.
The exterior affairs ministry’s readout mentioned Modi had “famous the significance of addressing the problem of financial offenders from India within the UK”. The 2 leaders additionally agreed on the necessity to make progress on points associated to migration and mobility.
India has been urgent the UK to expedite the extradition of round two dozen fugitives, together with three key financial offenders – former liquor baron Vijay Mallya, diamantaire Nirav Modi and arms supplier Sanjay Bhandari – who’re concerned in circumstances of monetary fraud involving big public funds.
Modi introduced that India will set up two new consulates at Belfast and Manchester within the UK in view of rising bilateral financial and enterprise ties and to raised serve the consular necessities of the Indian group in Britain. The transfer was welcomed by Starmer.
India presently has consulates in Birmingham and Edinburgh and honorary consulates in Belfast and Cardiff.
The Indian readout additional mentioned Modi and Starmer directed their ministers and senior officers to work for the sooner implementation of assorted understandings beneath the excellent strategic partnership. In addition they agreed to strengthen the partnership with a give attention to financial system, commerce, new and rising applied sciences, analysis and innovation, inexperienced finance and people-to-people contacts.
The 2 leaders welcomed the brand new India-UK Expertise Safety Initiative, launched in July with the goal of guaranteeing telecommunications safety and collaboration in key areas comparable to vital minerals, semiconductors, synthetic intelligence and quantum computing, and mentioned alternatives for additional cooperation in defence and safety.
India was the UK’s eleventh largest buying and selling accomplice within the 4 quarters to the top of Q2 in 2024, accounting for two.4% of complete UK commerce. Throughout this era, India’s exports to the UK amounted to £25.4 billion, a rise of 11.3% when in comparison with the identical interval of 2023. British exports to India have been value to £16.6 billion, a rise of seven.2% in comparison with the identical interval of 2023.
