India, U.K. to Re-Launch Trade Talks in New Year
India and the United Kingdom are set to re-launch trade talks in early 2025, following a bilateral meeting between UK Prime Minister Keir Starmer and Indian Prime Minister Narendra Modi during the G20 summit in Brazil. This announcement marks a renewed effort to finalize a free trade agreement (FTA) that has been under discussion since 2022, with previous negotiations having stalled under the prior UK government.
The trade relationship between India and the UK is significant, valued at £42 billion (approximately USD 53.2 billion) for the year leading up to June 2024. The UK aims to enhance this partnership by addressing various sectors such as security, education, technology, and climate change alongside trade. Business and Trade Secretary Jonathan Reynolds emphasized the importance of this deal for economic growth, stating that it could support over 600,000 jobs across both nations.
Starmer described the upcoming negotiations as an opportunity to create a “new strategic partnership” that would not only focus on trade but also on broader cooperation between the two countries. He highlighted the potential benefits of lowering tariffs on British exports and increasing investment from India.
The UK has already engaged in multiple rounds of discussions—over 14 to date—covering most of the 26 chapters involved in the negotiation process. However, challenges remain, particularly regarding visa regulations for Indian professionals and students wishing to work or study in the UK.
As both countries look toward a more integrated economic relationship, there is optimism about reaching a mutually beneficial agreement that aligns with their respective national interests and addresses key issues such as migration policy
UK to Relaunch Trade Talks with India: The UK is set to restart trade negotiations with India in early 2025, as announced by Prime Minister Keir Starmer following a meeting with Indian Prime Minister Narendra Modi during the G20 summit in Brazil. Starmer emphasized the ambition for a “new strategic partnership” that encompasses not only trade but also cooperation in areas such as security, education, technology, and climate change.
Significance of the Trade Relationship: The bilateral trade between the UK and India is currently valued at approximately £42 billion (around $53.2 billion) for the year leading up to June 2024. This relationship is expected to grow significantly, especially as India is projected to become the world’s third-largest economy by 2050. The UK aims to double this trade figure to £86 billion by 2030.
Challenges in Negotiations: Despite ongoing discussions since January 2022, previous negotiations faced hurdles, particularly regarding visa regulations and fees for Indian students and professionals. The last round of talks occurred in March 2024 before elections in both countries paused progress.
Future Prospects: The UK government plans to unveil a new Trade Strategy that aligns with its Industrial Strategy, aimed at achieving sustainable and inclusive growth through trade. Business Secretary Jonathan Reynolds highlighted India’s importance as a trading partner and expressed confidence that a mutually beneficial agreement could be reached.
This relaunch of trade talks marks a renewed effort by the Labour government to strengthen economic ties with one of the fastest-growing economies globally.
