India, UK agree to resume free trade talks
India and the United Kingdom have decided to restart negotiations for a Free Trade Agreement (FTA), Union Minister of Commerce and Industry Piyush Goyal announced on Monday. This decision comes after a productive meeting between Goyal and his UK counterpart, Jonathan Reynolds, in New Delhi.
New Delhi: India and the United Kingdom have decided to restart negotiations for a Free Trade Agreement (FTA), Union Minister of Commerce and Industry Piyush Goyal announced on Monday. This decision comes after a productive meeting between Goyal and his UK counterpart, Jonathan Reynolds, in New Delhi.
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Resumption of FTA Talks Following G20 Summit
The resumption of trade talks follows a significant discussion between Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer during the G20 Summit in Rio de Janeiro, Brazil in November 2024. The two leaders emphasized the need to restart trade negotiations at the earliest to strengthen bilateral economic ties.
Piyush Goyal expressed that India would approach the negotiations thoughtfully, stating, “All options are on the table. We are in active negotiations on three different aspects – the FTA, the Bilateral Investment Treaty, and a Double Contribution Convention Agreement. All three are in parallel and conjoined with each other.”
UK’s Strategic Focus on India
Jonathan Reynolds, the UK Business and Trade Secretary, also emphasized India’s importance as a key partner in an increasingly multipolar and volatile global environment. He said, “Through these talks, we want to secure a mutually beneficial agreement.”
Reynolds, who is in India on a three-day visit, reiterated that for the UK, this trade agreement is of top priority and has the backing of the UK Prime Minister and cabinet colleagues. However, he highlighted that the UK’s focus is not only on the speed of the agreement but also on its quality.
India’s Stance on FTA Negotiations
Minister Piyush Goyal made it clear that India would not rush into signing a deal, adding, “We will have speed but not haste.” He responded to a question about deadlines by emphasizing India’s commitment to a thoughtful and balanced trade agreement.
Key Areas of the India-UK FTA
The India-UK FTA negotiations, which have been underway since January 2022, cover 26 chapters, including important areas such as goods, services, investments, and intellectual property rights.
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- The UK seeks lower tariffs on products like electric vehicles and Scotch whisky.
- On the other hand, India is keen on securing easier visa rules for Indian professionals in the UK services sector.
Both countries have agreed to focus on a balanced and mutually beneficial agreement that drives economic growth and sustainable development.
Strong Bilateral Relationship
India and the UK share a strong and diverse relationship, collaborating in sectors like security, defence, emerging technologies, green finance, and education. The resumption of trade negotiations further cements their commitment to growing economic ties and enhancing cooperation on global challenges.
The trade deal is expected to build on the complementary strengths of both economies, with an emphasis on delivering economic growth and sustainable development.
