Skip to content
Search

Latest Stories

UK and India 'near trade deal' after years of talks

A formal agreement might be saved for a future meeting between prime ministers Keir Starmer and Narendra Modi

UK and India 'near trade deal' after years of talks

FILE PHOTO: Keir Starmer (L) and Narendra Modi talk during a bilateral meeting in the sidelines of 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)

THE UK and India are in the final stages of negotiating a free trade agreement (FTA) that could be Britain's most significant trade deal since leaving the European Union in 2020, according to sources close to the talks.

Indian commerce minister Piyush Goyal met UK officials in London this week, with reports suggesting that most issues have now been resolved after intensive negotiations.


"The final yards are always the hardest, but it's moving at breakneck pace," one person close to the discussions told the Financial Times.

According to reports, Goyal informed business leaders that "25 of 26 matters have been agreed" in the negotiations, though UK government sources cautioned that "the last bits are always the trickiest."

The most difficult area yet to be resolved is India's request to be exempted from the UK's planned "carbon border tax" set to begin in 2027, which would add costs to Indian exports such as steel.

"We need some clarification on your carbon border tax on steel and cement, because steel and cement will be important for us to sell you," said Shashi Tharoor, chair of the Indian parliament's committee on external affairs, as reported by Politico.

Another contentious issue involves whether Indian employees transferred to the UK should be exempt from national insurance contributions to avoid "double taxation."

"Essentially, what we're really looking for is something that you have with other countries which allows people who are already paying to their pension pots back home in India [to] be exempted for the period of their stay here," India's top diplomat in London, Vikram Doraiswami, told Times Radio.

India has apparently accepted that Britain will offer only minor changes to its visa regime, with new rules expected to lead to around 100 additional visas for Indian workers yearly, according to a UK official who spoke to Politico.

This represents a significant compromise from India's opening position, which had proposed larger quotas for professionals, particularly in sectors like IT and healthcare.

The negotiations have gained fresh urgency following US president Donald Trump's imposition of new tariffs. Trump has threatened a 26 per cent "reciprocal" tariff on Indian goods, while the UK already faces a 10 per cent levy on its exports to America.

"As Trump's trade war continues, getting a UK-India deal has gone up the scale in terms of political priorities," Tharoor said. "We all need buffers against the global trade uncertainties that have suddenly shot up in people's consciousness."

However, India's finance minister Nirmala Sitharaman rejected suggestions that India was rushing a UK deal because of US actions, saying, "It is not as if we're rushing into a UK (free trade agreement) because something is done by Trump in the US."

The trade talks have been in progress for more than three years, having first begun in January 2022 under then-prime minister Boris Johnson. Negotiations were paused in March last year ahead of elections in both countries before being relaunched in February 2025.

Bilateral trade between India and Britain, the world's fifth and sixth-largest economies respectively, reached £41 billion ($54bn) in the 12 months to September 2024, according to UK government estimates.

A No 10 spokesman said negotiations were "constructive and productive" but added: "We've been clear that we will only sign a deal in our best interest."

Meanwhile, sources suggest a formal agreement might be saved for a future meeting between prime ministers Keir Starmer and Narendra Modi in the coming months.

More For You

11th UK Gatka Championship

All winners received medals and trophies

UK Parliament

11th UK Gatka Championship ends with Welsh debut and £1,000 support for Gatka Akharas

Highlights:

  • The 11th UK National Gatka Championship was hosted near Cardiff, marking the first time in Wales.
  • Winners included Roop Kaur (girls), Navjot Singh (boys), and Gurdeep Singh (men’s).
  • Gatka Federation UK awarded £1,000 to each participating Akhara to support martial arts promotion.
  • Chief guests included MP Tanmanjeet Singh Dhesi and Harjeet Singh Grewal, President of the World Gatka Federation.

Gatka Championship marks Welsh debut

The 11th UK National Gatka Championship concluded on a high note near Cardiff, Wales, showcasing the traditional Sikh martial art with flair. Seven leading Gatka Akharas participated, thrilling spectators with their lightning-fast strikes, precision moves and elegant techniques.

Inauguration by global leaders

The tournament was inaugurated by Harjeet Singh Grewal, President of the World Gatka Federation (WGF) and the National Gatka Association of India (NGAI). He was joined by Tanmanjeet Singh Dhesi MP, President of Gatka Federation UK, alongside other dignitaries including Jagbir Singh Jagga Chakar, President of Wales Kabaddi Club, and community leaders from the Haveli Hotel Pontyclun.

Keep ReadingShow less
Vantara

The site, located in Gujarat, houses hundreds of elephants, as well as 50 bears, 160 tigers, 200 lions, 250 leopards, and 900 crocodiles. (Photo: Instagram/Vantara)

India court probe clears Ambani family’s animal centre

AN INDIAN Supreme Court-ordered investigation has cleared a large private animal facility run by the son of Asia’s richest man, rejecting allegations of wildlife violations.

Vantara, described as the “world’s biggest wild animal rescue centre,” is operated by Anant Ambani, son of Reliance Industries chairman Mukesh Ambani.

Keep ReadingShow less
Starmer

Starmer, who has faced negative coverage since taking office in July 2024, defended the appointment process.

Reuters

Starmer: I would not have appointed Mandelson if aware of Epstein ties

PRIME MINISTER Keir Starmer said on Monday he would not have appointed Peter Mandelson as UK ambassador to Washington had he known the extent of his links with convicted sex offender Jeffrey Epstein.

This was Starmer’s first public statement since dismissing Mandelson last week. The prime minister is facing questions over his judgement, including from Labour MPs, after initially standing by Mandelson before removing him from the post.

Keep ReadingShow less
Trump

Trump said the suspect had been arrested earlier for 'terrible crimes,' including child sex abuse, grand theft auto and false imprisonment, but was released under the Biden administration because Cuba refused to take him back.

Getty Images

Trump says accused in Dallas motel beheading will face first-degree murder charge

US PRESIDENT Donald Trump has described Chandra Mouli “Bob” Nagamallaiah, the Indian-origin motel manager killed in Dallas, as a “well-respected person” and said the accused will face a first-degree murder charge.

Nagamallaiah, 50, was killed last week at the Downtown Suites motel by co-worker Yordanis Cobos-Martinez, a 37-year-old undocumented Cuban immigrant with a criminal history.

Keep ReadingShow less
Starmer Mandelson

Starmer talks with Mandelson during a welcome reception at the ambassador's residence on February 26, 2025 in Washington, DC.

Getty

Starmer under pressure from party MPs after Mandelson dismissal

PRIME MINISTER Keir Starmer is facing questions within the Labour party after the sacking of US ambassador Peter Mandelson.

Mandelson was removed last week after Bloomberg published emails showing messages of support he sent following Jeffrey Epstein’s conviction for sex offences. The dismissal comes just ahead of US president Donald Trump’s state visit.

Keep ReadingShow less