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UK and India's mega-deal: Why fresh trade talks could change everything

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UK-India trade discussions set to resume after recent electoral shifts in both nations. The deal could reshape £42 billion worth of trade relations while opening new doors for tech and education partnerships

Keir Starmer and Narendra Modi met at the G20 summit in Brazil to jump-start UK-India trade talks which will kick-off in jan-2025. The discussions (which stopped earlier this year due to elections) aim to build a new-age partnership between both nations

The UKʼs fresh approach includes several key areas:

  • tech co-operation
  • security partnerships
  • climate-change solutions
  • education exchanges

“A new trade deal with India will support jobs and prosperity in the UK“ Starmer said at the summit. The Labour leader who became PM about 4 months ago‚ also had a sit-down with Xi Jinping to talk about UK-China trade ties

The numbers show why this deal is important - UK-India trade hit £42 billion by mid-2024; with British exports making up £16.6 billion. Previous talks hit some road-blocks including Indiaʼs high tax on British whiskey and visa rules for Indian students

Jonathan Reynolds the British Business Minister pointed out: “India is a vital trading partner for the UK; we believe theres a good deal to be done here that works for both nations“

The timing seems right as Modi starts his third term‚ and experts think India wants to close deals with UK and Oman fast. With OECD showing UK needs growth boost compared to other G7 nations - this partnership could be just what both countries need

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