Business Secretary Jonathan Reynolds highlighted the significance of India as the fifth largest economy, underscoring the potential benefits of a trade deal for both nations.

This announcement comes after Starmer's first meeting with Indian Prime Minister Narendra Modi at the G-20 summit in Brazil, where both leaders expressed a commitment to enhancing UK-India relations.

With India's rising middle class projected to reach a quarter of a billion by 2050, there is a substantial market opportunity for UK businesses.

The UK government is committed to relaunching trade talks with partners and plans to unveil a new Trade Strategy to foster sustainable growth through trade.

Modi was re-elected for a third term in June 2024, while Starmer took office in July 2024, marking a new chapter in UK-India relations.

Previous negotiations, which included 14 rounds, stalled in May 2024 due to elections in both countries, with the last round of talks concluding without progress.

However, significant challenges remain in areas such as goods, services, and investment, indicating potential difficulties ahead in reaching an agreement.

Concerns have been raised regarding access for UK services, which make up 80% of the UK economy, to the Indian market.

Negotiations for the trade agreement have been ongoing since January 2022, initially aiming for completion by Diwali in October 2022, but have faced delays due to political changes.

Prime Minister Keir Starmer has announced plans to restart negotiations on a UK-India free trade agreement (FTA) in early 2024, following a pause due to recent elections.

The proposed trade deal aims to include lower tariffs on UK whisky and cars, tariff reductions on Indian textiles, and increased visas for tech workers and students.

Starmer emphasized that a new trade deal with India would not only boost economic growth but also enhance job opportunities in the UK.