India, UK resume FTA talks

India and the UK on Monday announced the resumption of negotiations for a trade deal between the two countries.

The Union Ministry of Commerce, in a statement, said the announcement was made by Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds, who is in New Delhi.

In November last year, Prime Minister Narendra Modi and his UK counterpart Keir Starmer met on the sidelines of the G20 Summit in Rio de Janeiro, Brazil, to emphasise the need to restart trade talks at the earliest.

India and the UK share a strong partnership, spanning security and defence, emerging technologies, climate action, health, education, research and innovation, green finance and people-to-people ties. At the core of this relationship is a shared ambition for economic growth and sustainable development.

The Commerce Ministry stated, “Both sides have agreed to resume negotiations for a balanced, mutually beneficial and forward-looking deal that fosters mutual growth and leverages the strengths of the two complementary economies.”

Strengthening trade ties between India and the UK has the potential to create new opportunities for businesses and consumers in both nations.

Goyal and Reynolds directed negotiators to work towards resolving outstanding issues to ensure a fair and equitable trade agreement.

The discussions focused on “advancing” negotiations and securing a deal that is “balanced, ambitious and mutually beneficial”, Goyal wrote on X.

Since 2022, the two countries have held over a dozen rounds of talks, but an agreement has remained elusive.

Sticking points of deal

India is demanding greater access for its skilled professionals from sectors such as IT and healthcare in the UK market, besides market access for several goods at zero duty.

On the other hand, the UK is seeking a significant cut in import duties on goods such as Scotch whisky, electric vehicles, lamb meat, chocolates and certain confectionary items.

The deal is expected to double or even triple bilateral trade from the current USD 20 billion in the next 10 years.