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India-UK FTA talks aim for swift conclusion

The dates for the next round of discussions will be finalised through diplomatic channels.

India-UK FTA talks aim for swift conclusion
Keir Starmer (L) and Narendra Modi during the G20 summit at the Museum of Modern Art in Rio de Janeiro, Brazil Brazil, on November 18, 2024. (Photo by STEFAN ROUSSEAU/POOL/AFP via Getty Images)

INDIA and the UK aim to resolve differences and conclude the proposed Free Trade Agreement (FTA) swiftly, as Britain has announced plans to resume negotiations early next year, according to an official statement released on Wednesday (20).

Prime minister Keir Starmer announced the relaunch of trade talks with India following his bilateral meeting with Indian prime minister Narendra Modi at the G20 Summit in Brazil.


The two leaders met on the sidelines of the summit in Rio de Janeiro on Monday (18). After the meeting, Downing Street said that the UK is seeking a new strategic partnership with India, including a comprehensive trade agreement.

Negotiations for the proposed India-UK FTA began in January 2022. However, the 14th round of talks was stalled as both nations entered their respective general election cycles.

“We welcome the UK’s announcement to relaunch the India-UK free trade talks in the new year,” said the Ministry of Commerce.

Highlighting the importance of securing a balanced, mutually beneficial, and forward-looking FTA, the ministry added that India is committed to working closely with the UK’s negotiating team to address outstanding issues satisfactorily.

The dates for the next round of discussions will be finalised through diplomatic channels.

“The FTA talks will build on the progress made previously and aim to bridge the remaining gaps to conclude the deal expeditiously,” the statement said.

Pending issues remain in both goods and services sectors.

Indian industries are seeking greater access to the UK market for skilled professionals in sectors such as IT and healthcare, alongside tariff-free market access for a range of goods.

Conversely, the UK is pushing for significant reductions in import duties on goods such as Scotch whisky, electric vehicles, lamb meat, chocolates, and confectionery items. Britain is also seeking greater opportunities for UK services in Indian markets, particularly in telecommunications, legal, and financial services (banking and insurance).

Additionally, the two countries are negotiating a Bilateral Investment Treaty (BIT).

The proposed agreement consists of 26 chapters, covering areas such as goods, services, investments, and intellectual property rights.

Bilateral trade between India and the UK increased to £17.07bn in 2023–24, up from £16.29bn in 2022–23.

A virtual meeting between commerce and industry minister Piyush Goyal and UK secretary of state for business and trade Jonathan Reynolds took place on 11 July to discuss the next steps for the pact.

During April–September 2024, India’s exports to the UK grew by 12.38 per cent, reaching £5.86bn, compared to £5.21bn during the same period in 2023.

India’s key exports to the UK include mineral fuels, machinery, precious stones, pharmaceuticals, apparel, iron and steel, and chemicals, which collectively account for 68.72 per cent of total exports.

The UK is a priority market in achieving our ambitious £800bn export target by FY30, with exports to the UK projected to reach £24bn by 2029–30,” the ministry stated.

(PTI)

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