India and the UK resumed negotiations on a long-awaited free trade agreement (FTA) on Monday, with talks taking place in New Delhi between Commerce Minister Piyush Goyal and UK Business Secretary Jonathan Reynolds.
The discussions come at a crucial time as the global trade landscape faces uncertainty, particularly with potential tariff threats from former US President Donald Trump.
Negotiations for the India-UK FTA first began in January 2022. Thirteen rounds were completed by December 2023, with the fourteenth round starting in January 2024.
However, talks were put on hold in May 2024 due to the UK elections. Monday’s meeting marked the official resumption of the process.
Following the talks, Goyal described the agreement as "pathbreaking" and said it would create significant opportunities for businesses and individuals in both countries.
He expressed confidence that trade between India and the UK could double or even triple within the next decade. "Both Jonathan and I have agreed to resume free trade agreement negotiations in a very cordial atmosphere," Goyal said.
Reynolds echoed the sentiment, calling the resumption of talks a positive step. "Both of us want to do more, and that is why I am so pleased to be here today to kick-start these negotiations, strengthen our close and vibrant relationship, and unlock new opportunities for businesses and consumers across both the UK and India," he said.
A joint statement following the meeting emphasised the goal of achieving a balanced and mutually beneficial trade deal. The statement highlighted that the agreement would build on the strengths of both economies and further deepen existing economic ties.
Officials from both countries noted that significant progress had already been made, with most chapters of the deal agreed upon.
However, some key issues remain unresolved. These include India's request for social security payouts for Indian workers who have contributed to the UK system and the UK's stance on visa regulations for short-term Indian workers.
A Financial Times report stated that ahead of the meeting, Reynolds described securing a deal with India as a "no brainer," given India's rapid economic growth. India is expected to become the world’s third-largest economy in the coming years, making it a crucial trade partner for the UK.
Earlier, UK Prime Minister Keir Starmer’s government identified the India-UK FTA as one of its top trade priorities. Other priority negotiations include agreements with a six-nation Gulf group, Israel, South Korea, Switzerland, and Turkey.
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