• Fri. Jul 19th, 2024

Labour Party victory in UK and India-UK Free Trade Agreement negotiations

The Labour Party’s landslide victory in the UK elections is expected to have a positive impact on the ongoing India-UK Free Trade Agreement (FTA) negotiations.

Experts believe the new Labour government under Keir Starmer is likely to recognize the substantial benefits of the India-UK FTA and approve it with only minor adjustments, potentially leading to the deal being signed as early as October this year.

While the Labour Party may revisit some provisions around visas for Indian professionals and environmental issues based on its priorities, the overall outlook on the FTA remains positive.

The Labour manifesto had explicitly mentioned seeking a new strategic partnership with India, including an FTA.

Prime Minister Narendra Modi has already congratulated Keir Starmer on the Labour Party’s victory, indicating India’s willingness to work with the new UK government to further strengthen bilateral ties.

In a post on X PM Modi said, “Heartiest congratulations and best wishes to @Keir_Starmer on the remarkable victory in the UK general elections. I look forward to our positive and constructive collaboration to further strengthen the India-UK Comprehensive Strategic Partnership in all areas, fostering mutual growth and prosperity.”

However, the new government will need to balance domestic expectations and international sensibilities, including addressing concerns around the cost of living crisis in the UK.  Nonetheless, the Labour victory is seen as a positive development for the India-UK FTA negotiations.

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