The UK is gearing up to restart crucial trade discussions with India at the beginning of next year, aiming to elevate the existing relationship to a new level. Following a meeting between Sir Keir Starmer and Indian Prime Minister Narendra Modi at the G20 summit, Sir Keir expressed his enthusiasm for establishing a strategic partnership with India, focusing not only on trade but also on energy, security, and various other issues.
The prime minister highlighted the significance of a trade deal between the UK and India in terms of job creation and economic growth. The trading relationship between the two countries was valued at £42 billion in the 12 months leading up to June 2024. Discussions to renew trade talks are scheduled to commence in early 2025, with the objective of enhancing economic growth and providing opportunities for the people of the UK.
Under the previous government, trade negotiations between New Delhi and London had encountered obstacles. While there was a previously proposed deadline of October 2022 to coincide with Diwali, the current administration led by Rishi Sunak did not specify a target date for finalizing an agreement. The aim of the negotiations that began in January 2022 was to double trade between the UK and India to £86 billion by 2030.
India is projected to become the world’s third-largest economy by 2028, underscoring the importance of strengthening ties with the country. Describing India as a crucial trading partner, Business Secretary Jonathan Reynolds emphasized the need to enhance trading relationships with dynamic markets such as India. The government’s focus on driving economic growth through trade is a significant aspect of its core mission.
The UK has also been actively engaging in negotiations with other countries, such as Switzerland, South Korea, and the Gulf Cooperation Council, to forge better trading relationships globally. The government’s position on migration and access to the UK labor market remains rooted in the national interest, ensuring that any deals struck are aligned with the UK’s priorities.
In addition to trade discussions, the UK and India have signed an agreement aimed at strengthening cooperation in artificial intelligence and technology. The technology security initiative, agreed upon by both countries’ national security advisers, reflects the commitment to fostering innovation and collaboration in emerging technologies.
As Sir Keir Starmer continues to engage with foreign leaders at the G20 summit, discussions on a range of global issues, including support for Ukraine and the importance of respectful relations with China, are at the forefront. The UK’s efforts to navigate complex international relationships while promoting human rights and economic growth underscore the country’s commitment to global cooperation and diplomacy.
The upcoming trade talks between the UK and India represent a significant opportunity to enhance economic ties, create jobs, and foster prosperity for both nations. As the negotiations progress, the focus on mutual benefits, sustainable growth, and inclusive trade practices will be essential to building a strong and enduring partnership between the two countries.
