By BBC (Business) | Created at 2024-11-19 00:27:54 | Updated at 2024-11-25 13:28:35
6 days ago
Free trade talks between India and the UK will be relaunched in the new year, Downing Street has announced.
The news comes after Sir Keir Starmer met Indian prime minister Narendra Modi at the G20 summit in Brazil.
A post-Brexit deal could unlock valuable markets for British cars, Scottish whisky, and financial services worth billions of pounds, with India on course to become the third largest economy in the world by 2050.
However, the UK has been locked in more than a dozen rounds of negotiations since 2022, with key sticking points around relaxing visa rules and lowering fees for Indian students and professionals going to the UK.
UK exports to India are worth £16.6 billion and the trading relationship with India was worth £42 billion in the 12 months before June 2024.
Sir Keir has been meeting world leaders over the two-day summit of the 20 biggest global economies, and is expected to unveil new trade and industrial strategies in the coming weeks.
He said the latest round of talks with India will focus on security, education, technology, and climate change.
"Boosting economic growth is key to improving living standards for working people," he said.
"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."
Business and trade secretary Jonathan Reynolds described India as a "vital trading partner" and said he believed there is "a good deal to be done here" for both sides.
"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," he said.
The Labour government has been negotiating with Switzerland, South Korea and the Gulf Cooperation Council since their election victory in July.
The UK will also join trade talks for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in mid-December.
