Prime Minister Narendra Modi on Saturday spoke to newly elected British Prime Minister Keir Starmer as the two leaders agreed to work towards an early conclusion of a mutually beneficial India-UK free trade agreement, a statement from Prime Minister’s Office (PMO) said. Modi congratulated him on assuming charge and a remarkable victory of his Labour Party in the election.

The statement said both the leaders recalled the historic relations between the India and the UK and reaffirmed their commitment to further deepen and advance the Comprehensive Strategic Partnership between the countries. Appreciating the positive contributions of the Indian community in the social, economic and political development of the UK, they agreed to continue to promote the close people-to-people ties.

Modi also extended an invitation to Starmer for an early visit to India as the two leaders agreed to remain in touch, the statement said.

In a social media post, Modi said, “Pleased to speak with @Keir_Starmer. Congratulated him on being elected as the Prime Minister of the UK. We remain committed to deepening Comprehensive Strategic Partnership and robust India-UK economic ties for the progress and prosperity of our peoples and global good.”

Modi had congratulated Starmer on his win via social media post on Friday. He also thanked outgoing prime minister Rishi Sunak for “your admirable leadership of the UK and your active contribution to deepening the ties between India and the UK during your term in office. Best wishes to you and your family for the future.” In a significant shift in the political scene, Labour secured 412 out of 650 seats in the House of Commons, marking their best performance since Tony Blair’s 1997 victory. The Conservatives won only 121 seats, marking their worst-ever result and ending Rishi Sunak’s leadership of both the country and his party.

As regards the proposed trade pact, Starmer’s election manifesto included plans for Free Trade Agreement(FTA)with India, stressing shared values and strategic partnership.

The India-UK Free Trade Agreement (FTA) negotiations, which began in January 2022, aim to enhance economic ties by providing access to India’s large and growing market, bypassing high tariff barriers. The agreement covers 26 chapters, including goods, services, investments, and intellectual property rights.

Bilateral trade between India and the UK increased to USD 21.34 billion in 2023-24 from USD 20.36 billion in 2022-23.

Starmer’s stance on an FTA with India is articulated in Labour’s 2024 election manifesto, which outlines plans for forging a “new strategic partnership with India, including a free trade agreement, as well as deepening cooperation in security, education, technology, and climate change.”

Addressing the India Global Forum (IGF) last year, Starmer said his vision for a revamped Labour Party is to pass FTA.

“What my Labour government will seek with India is a relationship based on our shared values of democracy and aspiration. That will seek a free trade agreement (FTA), we share that ambition, but also a new strategic partnership for global security, climate security, economic security,” he said.