Britain and India will resume stalled talks to agree a free-trade deal, the two countries said after their leaders met at the G20 summit in Brazil.

Prime Minister Keir Starmer, who took power in London in July, hailed his meeting with Indian counterpart Narendra Modi as “very productive” and vowed that a trade pact with Delhi would boost UK growth.

“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,” he posted on X late Monday.

Hours earlier, Starmer’s office confirmed the two countries would relaunch the talks “in the new year” as Britain sought “a new strategic partnership with India”.

That will include “deepening cooperation in areas like security, education, technology, and climate change,” Downing Street said in a statement summarising the meeting of the two leaders.

India’s foreign ministry said both leaders had “underlined the importance of resuming the Free Trade Agreement negotiations at an early date”.

It added they had “expressed confidence in the ability of the negotiating teams, to address the remaining issues to mutual satisfaction, leading to a balanced, mutually beneficial and forward looking Free Trade Agreement”.

The two countries have spent nearly three years negotiating what would be a milestone for Britain as it continues to seek alternative markets after its departure from the European Union.

Tariffs, visas

The previous Conservative government, ousted by Starmer’s Labour party in July, had hit several roadblocks in its talks with Delhi over the trade pact. In exchange for lowering tariffs on British imports such as whisky, India has pushed for more UK work and study visas for its citizens.

But Starmer’s Downing Street predecessor, Rishi Sunak, took an increasingly tough stance on immigration during his 20-month tenure as he faced a backlash over record migration levels in the wake of the Covid pandemic.

His government unveiled a raft of measures in late 2023 aimed at curbing the numbers.

Starmer has prioritised kickstarting anaemic UK economic growth but his administration is also under pressure on the contentious issue.

Britain has secured a number of post-Brexit trade deals, including with Australia, New Zealand and Singapore, and is set to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) next month.

But a much sought-after trade deal with the United States remains elusive, and striking a deal with Canada also faltered earlier this year.