Sir Keir Starmer is to relaunch trade talks with India which were stalled over relaxing visa rules to come to the UK, No10 has announced.
The discussions will reopen at the start of next year, following a bilateral meeting between Sir Keir and Indian PM Narendra Modi at the G20 summit in Rio de Janeiro, Brazil.
The two leaders 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”.
But it is far from clear whether a wide-ranging free trade deal can be struck.
Britain and India have held a dozen rounds of trade talk negotiations since 2022, with relaxing visa rules and lowering fees for Indian students and professionals coming to the UK being among the sticking points.
Following the meeting between Sir Keir and Mr Modi on Monday, the PM said that a trade deal 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.”
The renewed talks will come after experts at Oxford University warned that raising the UK visa salary threshold for skilled workers to £38,700 in April 2024 could cost the public finances £25 billion over ten years.
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 said 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.
Rishi Sunak’s administration 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.
