India and the UK plan to resume negotiations on a long-pending free trade agreement (FTA) early next year, following an announcement by British Prime Minister Keir Starmer during the G20 Summit in Brazil, a commerce ministry statement said on Wednesday.

Starmer met Prime Minister Narendra Modi on the sidelines of the summit in Rio de Janeiro, where the two leaders discussed strengthening bilateral ties.

A Downing Street statement said the UK is aiming
for a strategic partnership with India, including a free trade agreement.

Talks on the trade deal, which began in January 2022, stalled after the 14th round as both nations entered their respective election cycles.

“We welcome the UK’s decision to relaunch FTA negotiations in the new year,” commerce ministry Piyush Goyal said.

The ministry emphasised the importance of a “balanced, mutually beneficial, and forward-looking” agreement, adding that India looks forward to resolving outstanding issues.

Negotiations will pick up from where they were left off, with dates to be set through diplomatic channels.

The proposed FTA covers 26 chapters, including goods, services, investments, and intellectual property rights. Pending issues remain in the goods and services sectors, officials said.