British Prime Minister Keir Starmer said on Monday that his government would restart the trade talks with India following a bilateral meeting with PM Narendra Modi at the G20 summit in Brazil.

“Boosting trade abroad is essential to delivering a strong economy at home. The UK is committed to negotiating a trade deal with India – one of the fastest growing economies in the world,” a statement issued by his office said.

It added that the UK will seek a new strategic partnership with India, including a trade agreement, and deepen cooperation in areas like security, education, technology, and climate change.

Starmer said that a new trade deal with India will support jobs and prosperity in the UK.

“Boosting economic growth is key to improving living standards for working people,” the statement released by 10, Downing Street, quoted Starmer as saying after the bilateral meeting. “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.”

A statement issued by PM Modi's office said that both leaders underlined the importance of resuming the Free Trade Agreement (FTA) negotiations as soon as possible.

They also expressed confidence in the ability of the negotiating teams, to address the remaining issues to mutual satisfaction, leading to a balanced, mutually beneficial and forward looking Free Trade Agreement.

Modi, who met Starmer for the first time since his assumption of office, describe the exchange with British PM as "extremely productive".

"For India, the Comprehensive Strategic Partnership with the UK is of immense priority. In the coming years, we are eager to work closely in areas such as technology, green energy, security, innovation and technology," Modi said in a post on X.

India-UK FTA talks

Negotiations between the two nations stalled back in May after 14 rounds spanning two years, held up by elections first in India and then the UK. The strong personal relationship between Modi and Rishi Sunak, ex-UK PM, was seen as the best shot at getting an agreement signed, but it proved elusive.

Before talks went on ice, people close to both negotiating teams told Bloomberg there were still hurdles to be overcome in goods, services and investment areas, suggesting Starmer will have his work cut out managing to find agreement.

Still, Starmer, who came to power in July, has said economic growth is his main goal in office. A trade agreement with India and closer economic ties with China are a part of meeting that objective.

The UK’s trading relationship with India was worth £42 billion in the 12 months to June 2024, Number 10 Downing Street said, with British exports accounting for about 40% of total commerce.

The India-UK Free Trade Agreement (FTA) negotiations, which began in January 2022, aim to enhance economic ties by providing access to India's large and growing market, bypassing high tariff barriers. The agreement covers 26 chapters, including goods, services, investments, and intellectual property rights.