UK’s Keir Starmer Pushes for India Trade Deal, a Task Even Rishi Sunak Couldn’t Finalize

UK’s Keir Starmer Seeks to Revive Trade Talks with India After Stalled FTA Negotiations, Aiming for Economic Growth and Stronger Bilateral Relations

British Prime Minister Keir Starmer has promised to resume talks on trade with India following a crucial sit-down session with Prime Minister Narendra Modi at the G20 summit in Brazil. The UK government said, in a statement released after the talks, that boosting trade featured as part of the strategy intended to strengthen its domestic economy. The statement highlighted that India is one of the fastest-growing economies in the world and said it was an important opportunity for the UK to ensure a prosperous trade deal.

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Starmer pledged himself to securing a new trade agreement with India, intending to deepen bilateral cooperation through sectors such as security, education, technology, and climate change. He stressed that such a trade agreement would promote employment and economic development in the UK; this was part of his overall aim to raise living standards and provide employment opportunities for workers. “Improving living standards for working people depends on increasing economic growth,” Starmer said, pointing out the role of overseas trade in accomplishing this.

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Prime Minister Modi echoed this sentiment, noting that both leaders discussed the resumption of Free Trade Agreement (FTA) negotiations. According to a statement from Modi’s office, both sides are confident that their negotiating teams will be able to overcome remaining hurdles and reach a mutually beneficial deal. Modi said that the exchange with Starmer was “extremely productive,” and that in regards to India’s Comprehensive Strategic Partnership with the UK, the sectors that receive much importance include technology, green energy, security, and innovation.

The push for a new trade deal with India follows negotiations for an FTA between both nations stalled in May 2024. The talks, that had been ongoing for more than two years, stalled by political events such as the elections in India and the UK; despite a close personal relationship between Modi and then Prime Minister Rishi Sunak, the deal was not sealed. Many issues, particularly on goods, services, and investment, are left unraveled as the negotiations stalled. With Starmer now taking the lead on the UK government, navigating these complex negotiations is important in his leadership.

In the economic agenda, Starmer has always focused on growth. Key among these is a trade deal with India, which is central to realizing growth. The UK’s trade with India stood at £42 billion for the year up to June 2024. British exports covered nearly 40% of this figure. The FTA, if concluded, would give better access to India’s large and dynamic market, bypassing high tariff barriers that have so far entangled trade.

The path to the successful signing of a FTA is still not certain, mainly because there are several unsettled issues in the dimensions of goods, services, and investment; but with Starmer’s commitment to increase UK’s size and focus on deepening relations with India, both nations are optimistic about finding a high-profile trade deal sooner rather than later.

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