Labour Party victory renews hope for India-UK trade deal

India is optimistic that its delayed trade deal with the United Kingdom (UK) could gain momentum with a stable Labour government.

- SHREYA NANDI & ASIT RANJAN MISHRA

Keir Starmer became Britain's Prime Minister on Friday after his Labour Party's landslide electoral victory against Rishi Sunak-led Conservatives.

Prime Minister Narendra Modi congratulated Starmer on the "remarkable" victory. "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," Modi said in a post on X.

A senior government official in New Delhi who did not wish to be named said India's relations with the UK were unlikely to change with the new government. "We are confident that the trade deal, which is at an advanced stage of negotiations, can be closed after accommodating sensitivities of both sides," the official said.

India and the UK have been negotiating a trade agreement for two and a half years now. Both sides were looking to seal the deal in July after a new government would take office in New Delhi following the general elections. However, an early election in the UK further delayed the whole process.

In its manifesto, the Labour Party had pledged to seek "a new strategic partnership with India, including a free-trade agreement (FTA)" and to deepen cooperation in security, education, technology, and climate change.