India and the UK will resume trade deal negotiations early next year to resolve remaining issues and finalize a balanced, forward-looking free trade agreement (FTA) after a multi-year hiatus. month due to elections in both countries.

Prime Minister Narendra Modi and his British counterpart Keir Starmer on Monday agreed to resume negotiations on the trade deal during their meeting on the sidelines of the G20 summit in Rio de Janeiro. It was the first meeting between Modi and Starmer, who took office in July.

Modi also raised the issue of extradition of India’s wanted economic offenders with Starmer and announced that two new Indian consulates would be established in Belfast and Manchester to strengthen economic and trade ties. This will bring the total number of Indian consulates in the UK to five.

In an article on X, Modi said he had an “extremely productive meeting” with Starmer. “For India, the comprehensive strategic partnership with the UK is of immense priority. In the coming years, we look forward to working closely together in areas such as technology, green energy, security, innovation and technology. We also want to strengthen trade ties as well as cultural ties,” he said.

Starmer also described the meeting as very productive in an article on X and said both sides had announced “plans to restart UK-India trade talks”. He added: “A new trade deal will support jobs and prosperity in the UK – and represent a step forward in our mission to generate growth and opportunity across the country. »

The Foreign Ministry said in a statement that the two leaders “stressed the importance of resuming negotiations on the free trade agreement” and expressed confidence in their negotiating teams to “resolve the remaining issues to be resolved.” mutual satisfaction, leading to a balanced, mutually beneficial and progressive agreement. “-look” agreement.

A Downing Street spokesperson said leaders “agreed to restart UK-India trade talks early next year” as part of moves to advance the comprehensive strategic partnership in the areas of trade, investment, security, defence, technology, climate, health and education.

The two sides started talks on the FTA in January 2022 and the 14th round of negotiations began in January this year. Discussions were halted due to general elections in both countries, which saw Modi secure a third term in June and the emergence of a new Labor government led by Starmer in July. Before the break in negotiations, negotiators from both sides were in contact on key outstanding issues such as the UK’s request for tariff concessions on automobiles, including electric vehicles, and Scotch whisky, and the appeal of India for easier visa norms for professionals.

The Foreign Office statement said Modi “noted the importance of tackling the problem of Indian economic offenders in the UK”. The two leaders also agreed on the need for progress on issues related to migration and mobility.

India has put pressure on the UK to speed up the extradition of around 20 fugitives, including three key economic offenders – former liquor baron Vijay Mallya, diamond merchant Nirav Modi and gold trader arms Sanjay Bhandari – who are involved in financial fraud cases involving huge public funds.

Modi announced that India would establish two new consulates in Belfast and Manchester in the United Kingdom, in view of the growing bilateral economic and trade relations and to better cater to the consular needs of the Indian community in Britain. The move was welcomed by Starmer.

India currently has consulates in Birmingham and Edinburgh and honorary consulates in Belfast and Cardiff.

The Indian statement further said that Modi and Starmer asked their ministers and senior officials to work towards faster implementation of various agreements under the Comprehensive Strategic Partnership. They also agreed to strengthen the partnership with emphasis on economy, trade, new and emerging technologies, research and innovation, green finance and people-to-people contacts.

The two leaders welcomed the new India-UK technology security initiative, launched in July with the aim of ensuring telecommunications security and collaboration in key areas such as critical minerals, semiconductors, artificial intelligence and quantum computing, and discussed opportunities for increased cooperation in the areas of defense and quantum computing. security.

India was the UK’s 11th largest trading partner in the four quarters to the end of the second quarter of 2024, accounting for 2.4% of the UK’s total trade. During this period, India’s exports to the UK totaled £25.4 billion, an increase of 11.3% compared to the same period in 2023. UK exports to India were worth £16.6 billion, an increase of 7.2% over the same period. of 2023.