India’s Piyush Goyal emphasised that the upcoming agreement would be a pathbreaking deal, creating vast opportunities for businesses and individuals in both countries.
India and the United Kingdom have officially resumed negotiations on a Free Trade Agreement (FTA) with the goal of securing a balanced, mutually beneficial, and forward-looking trade deal. The announcement was made jointly by India’s Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds, who is currently visiting New Delhi.
The resumption of talks follows discussions between Prime Minister Narendra Modi and UK Prime Minister Keir Starmer on the sidelines of the G20 Summit in Rio de Janeiro, Brazil, in November 2024. Both leaders had underscored the importance of expediting negotiations to unlock new economic opportunities for businesses and consumers in both nations.
India and the UK share a longstanding partnership built on collaboration in trade, security and defence, emerging technologies, climate change, health, education, research, and innovation. The nations are also working closely on green finance and strengthening people-to-people ties.
The Commerce Ministry stated that both sides are committed to building on their complementary economies, leveraging their strengths to foster economic growth and sustainable development. The agreement aims to increase bilateral trade, currently valued at $20 billion, and potentially double or triple it over the next decade.
Commitment to a Balanced FTA
During a joint press conference, Piyush Goyal emphasised that the upcoming agreement would be a pathbreaking deal, creating vast opportunities for businesses and individuals in both countries.
“Both Jonathan and I have agreed to resume free trade agreement negotiations in a very cordial atmosphere. We will build upon the strong groundwork laid by the previous 14 rounds of negotiations,” Goyal stated.
He described the FTA as forward-looking, transparent, ambitious, equitable, balanced, and mutually beneficial—a true win-win agreement for both nations.
Reynolds echoed this sentiment, stressing that the FTA will strengthen the UK-India partnership and unlock new business opportunities.
“This is an excellent place to start from, but both of us want to do more. I am pleased to be here today to kick-start these negotiations, strengthen our vibrant relationship, and unlock new opportunities for businesses and consumers,” Reynolds said.
Roadmap for Future Trade Talks
Goyal and Reynolds have directed negotiators to resolve outstanding issues swiftly while ensuring that the deal remains fair and equitable. Goyal highlighted that both sides will move “quickly without being hurried”, ensuring that negotiations prioritise quality over speed.
The 14th round of FTA negotiations, which began in January 2024, was paused in May 2024 due to the UK elections. With discussions now back on track, both sides have reaffirmed their commitment to a robust trade deal that benefits both economies.
Goyal’s office confirmed the approach in a post on X (formerly Twitter):
“Minister @PiyushGoyal announced the restart of the India-UK FTA negotiations today. At the joint press briefing with @JReynoldsMP, UK Secretary of State for Business and Trade, he reiterated that both sides are committed to a robust agreement benefiting people and businesses and that speed and not haste will be the approach of the negotiating teams.”
A Game-Changer for Global Trade
India and the UK are among the world’s top economies, ranking fifth and sixth, respectively. Strengthening trade relations between the two is expected to bolster investment, boost employment, and support innovation in key sectors.
India-UK FTA negotiations initially launched on January 13, 2022, and have since undergone 13 formal rounds of discussions. The resumption of talks signals a renewed push to finalise an agreement that will reshape economic ties between the two countries.
The economic potential of enhanced trade relations remains immense, with both nations looking to expand market access, remove trade barriers, and create a seamless investment environment. As negotiations gain momentum, stakeholders in both countries will be watching closely to see how the deal unfolds in the coming months.
