India-UK Free Trade Agreement Back On Track, Promises Mutual Growth

India and the United Kingdom have officially resumed negotiations on a Free Trade Agreement (FTA) that aims to be “balanced, mutually beneficial, and forward-looking.” The announcement came following discussions between Commerce and Industry Minister Piyush Goyal and the UK’s Secretary of State for Business and Trade, Jonathan Reynolds, who is currently in New Delhi.

A statement from the Commerce Ministry said the decision to restart negotiations was a result of talks between Prime Minister Narendra Modi and his UK counterpart Keir Starmer on the sidelines of the G-20 Summit in Rio de Janeiro, Brazil, in November 2024. Both leaders emphasized the need to expedite discussions to strengthen bilateral economic ties.

The India-UK partnership extends beyond trade, encompassing security and defense cooperation, technological advancements, climate action, health, education, research, innovation, green finance, and cultural exchanges. The renewed trade negotiations aim to further this collaboration by fostering economic growth and sustainable development.

“Both sides have agreed to resume negotiations towards a balanced, mutually beneficial, and forward-looking deal that delivers mutual growth and builds on the strengths of the two complementary economies,” the Commerce Ministry said in its release. The agreement is expected to unlock new opportunities for businesses and consumers in both nations.

At a joint press conference, Goyal described the potential trade pact as “pathbreaking,” stating that it could help expand the current USD 20 billion bilateral trade in merchandise to two or three times its present value over the next decade. He added that the groundwork laid in the 14 previous rounds of talks will serve as a strong foundation for further progress.

“We want to do more”

Reynolds echoed this sentiment, expressing confidence that the negotiations would bolster the close and vibrant relationship between India and the UK. “We want to do more, and that’s why I am pleased to be here today to kick-start these negotiations. Our goal is to deliver economic growth, create wealth, jobs, and opportunities for businesses and consumers across both the UK and India,” he said.

Goyal emphasized that while both sides are committed to progressing “quickly,” they will not rush the process. “Speed and not haste will be the approach of the negotiating teams,” he remarked.

The India-UK FTA negotiations were initially launched on January 13, 2022. Thirteen rounds were held until December 2023, followed by the 14th round in January 2024. However, negotiations were paused by the UK side in May 2024 due to their general elections. With talks now back on track, both nations are keen to resolve outstanding issues and finalize an agreement that ensures shared success.

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