Prime Minister Narendra Modi and his British counterpart Keir Starmer agreed on resuming negotiations for the trade deal at their meeting on the margins of the G20 Summit in Rio de Janeiro on Monday. This was the first meeting between Modi and Starmer, who assumed office in July.

Modi also raised the issue of extraditing economic offenders wanted by India with Starmer, and announced that two new Indian consulates will be established in Belfast and Manchester to drive economic and business ties. This will take the total number of Indian consulates in the UK to five.

In a post 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 are eager to work closely in areas such as technology, green energy, security, innovation and technology. We also want to add strength to trade as well as cultural linkages,” he said.

Starmer too described the meeting as very productive in a post on X, and said the two sides had announced “plans to relaunch 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 deliver growth and opportunity across the country.”

The external affairs ministry said in a readout that the two leaders “underlined the importance of resuming the free trade agreement negotiations” and expressed confidence in their negotiating teams to “address the remaining issues to mutual satisfaction, leading to a balanced, mutually beneficial and forward-looking” deal.

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

The two sides began discussions on the FTA in January 2022 and the 14th round of talks started in January this year. The discussions were paused because of general elections in both countries, which saw Modi securing a third term in June and the emergence of a new Labour Party government under Starmer in July. Before the pause in talks, negotiators from the two sides were in touch on key outstanding issues such as the UK’s demand for tariff concessions for automobiles, including EVs, and Scotch whisky, and India’s call for easier visa norms for professionals.

The external affairs ministry’s readout said Modi had “noted the importance of addressing the issue of economic offenders from India in the UK”. The two leaders also agreed on the need to make progress on issues related to migration and mobility.

India has been pressing the UK to expedite the extradition of around two dozen fugitives, including three key economic offenders – former liquor baron Vijay Mallya, diamantaire Nirav Modi and arms dealer Sanjay Bhandari – who are involved in cases of financial fraud involving huge public funds.

Modi announced that India will establish two new consulates at Belfast and Manchester in the UK in view of growing bilateral economic and business ties and to better serve the consular requirements 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 readout further said Modi and Starmer directed their ministers and senior officials to work for the faster implementation of various understandings under the comprehensive strategic partnership. They also agreed to strengthen the partnership with a focus 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 further cooperation in defence and security.

India was the UK’s 11th largest trading partner in the four quarters to the end of Q2 in 2024, accounting for 2.4% of total UK trade. During this period, India’s exports to the UK amounted to £25.4 billion, an increase of 11.3% when compared to the same period of 2023. British exports to India were worth to £16.6 billion, an increase of 7.2% compared to the same period of 2023.