India and UK agree to resume free trade talks
India and the United Kingdom have agreed to restart negotiations for a Free Trade Agreement (FTA) following a meeting between Union Minister of Commerce and Industry Piyush Goyal and UK Business and Trade Secretary Jonathan Reynolds in New Delhi.
The decision to resume talks builds on discussions between Prime Minister Narendra Modi and UK Prime Minister Keir Starmer during the G-20 Summit in Rio de Janeiro last November, where both leaders emphasized the need to accelerate trade negotiations.
“All options are on the table. We are actively negotiating three key agreements in parallel—the Free Trade Agreement, the Bilateral Investment Treaty, and the Double Taxation Convention Agreement,” said Goyal.
Reynolds highlighted India’s strategic importance to the UK in a rapidly evolving global landscape. “We have restarted UK-India FTA negotiations. Through these talks, we aim to secure a mutually beneficial agreement,” he stated.
Goyal emphasized that India would not rush the negotiations, stating, “We will have speed but not haste,” when asked if a deadline had been set for the deal. Reynolds echoed similar sentiments, saying, “There is urgency, and this is a top priority for the UK government, with strong support from the Prime Minister and key cabinet members. However, the quality of the trade agreement is just as important as the speed of its completion.”
The UK and India initially began FTA negotiations in January 2022 under the previous Conservative-led government. The current Labour Party government has expressed its commitment to continuing the discussions.
The proposed agreement covers 26 chapters, including trade in goods, services, investments, and intellectual property rights. The UK seeks lower tariffs on products such as electric vehicles and Scotch whisky, while India is pushing for relaxed visa regulations for its skilled professionals in the UK services sector.
India and the UK share a robust bilateral relationship, built on cooperation in security, defence, technology, climate action, health, education, research, green finance, and cultural exchange. Both countries have agreed to work toward a balanced, forward-looking trade deal that fosters economic growth and strengthens their complementary economies.
