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India-UK free trade agreement talks to resume by January-end: Report

The two nations have been engaged in intermittent talks over the trade agreement for the past two years. Last month, Keir Starmer stated that discussions would restart in the "new year."

Starmer during a bilateral meeting with Modi as he attends the G20 summit on November 18, 2024 in Rio de Janeiro, Brazil. (Photo: Getty Images)
Starmer during a bilateral meeting with Modi as he attends the G20 summit on November 18, 2024 in Rio de Janeiro, Brazil. (Photo: Getty Images)
Starmer during a bilateral meeting with Modi as he attends the G20 summit on November 18, 2024 in Rio de Janeiro, Brazil. (Photo: Getty Images)

INDIA and the UK will resume discussions on a free trade agreement (FTA) by the end of January, according to an Indian government source quoted by Reuters on Thursday.

The two nations have been engaged in intermittent talks over the trade agreement for the past two years. Last month, Keir Starmer stated that discussions would restart in the "new year."


Starmer had announced the relaunch of trade negotiations following his bilateral meeting with Indian Prime Minister Narendra Modi during the G20 Summit in Brazil. Their meeting, held on the sidelines of the summit in Rio de Janeiro, led to Downing Street’s statement about the UK seeking a new strategic partnership with India, including progress on a trade deal.

Talks on the proposed FTA began in January 2022, with 13 rounds completed before negotiations stalled as both countries entered their respective general election cycles.

Unresolved issues remain in the goods and services sectors. India is pushing for better access to the UK market for skilled professionals in fields such as IT and healthcare, along with duty-free access for several goods.

Meanwhile, the UK is advocating for significant reductions in import duties on items like scotch whiskey, electric vehicles, lamb meat, chocolates, and confectionery. Britain is also seeking more opportunities for UK services in areas such as telecommunications, legal, and financial services.

The two countries are also discussing a bilateral investment treaty (BIT) alongside the FTA negotiations. The agreement includes 26 chapters, covering goods, services, investments, and intellectual property rights.

Bilateral trade between India and the UK grew to £16.8 billion in 2023-24, compared to £16 billion in the previous financial year.
(With inputs from agencies)

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