The UK is set to relaunch trade talks with India, Downing Street has announced.
It was confirmed that discussions will reopen at the start of next year, following a bilateral meeting between Sir Keir Starmer and Indian PM Narendra Modi at the G20 summit.
According to an official readout of the meeting in Rio de Janeiro, both Sir Keir and Mr Modi agreed to work towards an “ambitious UK-India Comprehensive Strategic Partnership to take the relationship to new heights in trade and investment, security and defence, technology, climate, health and education.”The announcement comes ahead of the last day of the summit, during which the Prime Minister has come under pressure over the question of the use of Storm Shadow missiles in Russia.
Following the meeting between Sir Keir and Mr Modi on Monday the PM has said that a deal between India and the UK would help support jobs in the UK, with a trading relationship with India worth £42 billion in the 12 months to June 2024, according to Downing Street.
Sir Keir said: “Boosting economic growth is key to improving living standards for working people.
“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 has described India as a “vital trading partner for the UK”.
In a statement marking the announcement, he said: “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.”
In July, Mr Reynolds had said that the UK intended “to forge better trading relationships with countries around the world”.
Discussions between New Delhi and London over a trade deal had stalled under the last government.
Former prime minister Boris Johnson had previously said that he wanted a deal done by October 2022 to coincide with Diwali celebrations.
Although Rishi Sunak’s administration had declined to set a target date for signing off on an agreement.
Earlier this year the UK and India signed off on a scheme aimed at strengthening co-operation on artificial intelligence and technologies.
Sir Keir is expected to hold talks with more foreign leaders on Tuesday, the same day that 1,000 days since Russia’s invasion of Ukraine.
Since he arrived in Rio the Prime Minister has been facing questions on whether Storm Shadow missiles will be signed off for use against Russian targets by Ukraine, after President Joe Biden allowed Kyiv to use US-supplied weapons.
The PM declined to get into “operational details” when asked by broadcasters on Monday “because the only winner, if we were to do that, is (Vladimir) Putin, and I’m not prepared to do that”.
In his first bilateral of the summit on Monday, the PM told Chinese President Xi Jinping he wanted “respectful” relations with Beijing.
The Prime Minister raised the case of detained pro-democracy activist Jimmy Lai in a sign he was prepared to challenge China over human rights abuses, but he also signalled a desire for greater business co-operation.
However, shadow foreign secretary Dame Priti Patel said the PM should have been “stronger in raising our concerns over human rights” following the meeting.
She said in a statement: “While it is important to have a constructive diplomatic dialogue with China, the Prime Minister should have been stronger in raising our concerns over human rights, the repressive nature of the national security laws imposed on Hong Kong, and the security, safety and wellbeing of British nationals, like Jimmy Lai, who should be freed from custody.”
The meeting with the Chinese leader came ahead of talks with other nations including Australia, Japan, and Canada throughout the day.
Ukraine featured in a number of Sir Keir’s discussions with world leaders on Monday.
According to readouts issued by Downing Street, leaders in both the Japan and Australia meetings agreed to “double down” on support for Kyiv.
Meanwhile, the leader’s declaration published on Monday night touched on the conflicts in Ukraine and the Middle East.
It noted “ with distress the immense human suffering and the adverse impact of wars and conflicts around the world.”
