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UK Prime Minister Keir Starmer and Prime Minister Narendra Modi sparked speculation about progress on the India-UK trade agreement after the two leaders were overheard discussing what appeared to be a breakthrough during the G7 Summit in France.

As the leaders met on the sidelines of the summit in Evian, they were caught on a microphone exchanging remarks that suggested some form of agreement had been reached, Mint reported.

"We did it," Modi can be heard telling Starmer.

Starmer replied, "We did it. Yes, yes, yes, I hear. We got it over the line. So this is good."

Trade Deal Appears Closer To Resolution

Although the subject of the conversation was not explicitly stated, the exchange has fuelled expectations that India and the United Kingdom may be close to resolving outstanding issues related to their trade agreement.

The deal was sealed last year but has yet to be fully implemented.

India initially attributed the delay to the UK's parliamentary process. More recently, however, officials from India indicated that progress could be affected by disagreements over Britain's new steel safeguard measures.

Steel Safeguards Emerged As Key Sticking Point

India had suggested it may reconsider certain concessions under the free trade agreement in response to the UK's recent steel safeguards.

The measures are expected to significantly reduce tariff-free import quotas, becoming a key source of friction between the two sides as they worked towards implementing the agreement.

'How Will We Announce It Today?'

Following the initial exchange between the two leaders, an Indian aide was heard asking, "how will we announce it today?"

Starmer responded: "I think we put a statement out."

The British Prime Minister then added, "or we could do something more," before asking, "should I ask our teams how we should do this?"

The conversation further intensified speculation that discussions on the trade agreement may have reached an important stage.

No Mention Of Steel Dispute In Official Readouts

Prime Minister Modi and Prime Minister Starmer later held a formal bilateral meeting on the sidelines of the G7 Summit.

However, neither the British nor the Indian official readouts referred to the steel safeguard dispute.

"The leaders looked forward to the early entry into force of the comprehensive economic and trade agreement," the Indian government's readout stated.

Starmer's office did not immediately respond to a request for comment.