UK-India trade talks kick off in New Delhi on Monday with Business and Trade Secretary Jonathan Reynolds meeting with Commerce Minister Piyush Goyal
The UK and India are set to relaunch trade deal negotiations today, with UK ministers arriving in India to discuss a significant economic opportunity that could bolster growth and prosperity for both nations.
India is projected to have the highest growth rate among G20 countries over the next five years and is expected to become the world’s third-largest economy by 2028. By 2035, India’s middle class is anticipated to reach 95 million, creating vast opportunities for UK businesses to tap into a market eager for British goods and services.
The UK’s Business and Trade Secretary, Jonathan Reynolds, emphasized the importance of securing a trade deal with India, which is poised to become the third-largest economy globally. “Securing a trade deal with what is soon-to-be the third biggest economy in the world is a no-brainer, and a top priority for me and this Government,” Reynolds said. “That is why I’m flying to New Delhi with our top negotiating team to show our commitment to getting these talks back on track.”
Reynolds highlighted that a pragmatic government can deliver the economic growth and stability that the British public and businesses deserve, in line with the government’s Plan for Change. “Growth will be the guiding principle in our trade negotiations with India, and I’m excited about the opportunities on offer in this vibrant market,” he added.
Trade ministers from both countries will engage in two days of focused discussions, marking the first formal negotiations under the current government. The talks aim to establish a modern economic deal that will benefit both nations.
Standard Chartered UK CEO and Head of Client Coverage UK, Saif Malik, welcomed the efforts to strengthen trade ties with India. “As a leading global bank operating in India for over 160 years, the opportunities for British businesses are significant,” Malik said. “Improved access to India’s growing consumer market, opportunities in manufacturing, infrastructure, and innovation, or collaboration in financial and professional services, the relaunch of trade talks can unlock even greater trade, investment, and prosperity across the UK-India corridor.”
Richard Heald, Chair of the UK India Business Council, expressed optimism about the negotiations. “The UK Government’s visit reaffirms its commitment to a new ambitious and future-focused trade and investment relationship with India,” Heald said. “Success in the FTA will support further economic growth for the world’s 5th and 6th largest economies and signal that the UK and India are strategic partners.”
The UK and India are restarting trade deal negotiations, focusing on a partnership that could boost economic growth for both nations. With India set to become the world’s third-largest economy, the agreement offers significant opportunities for UK businesses in sectors like manufacturing, clean energy, and financial services.
The talks will commence with a visit to Delhi’s National Crafts Museum, showcasing Indian commerce and artisans. UK Investment Minister Poppy Gustafsson will also visit BT India’s office in Gurugram, one of the largest UK employers in India, to see how UK tech and Indian talent are addressing global challenges.
Gustafsson will address investors in Mumbai and Bengaluru, promoting the UK as an ideal destination for Indian businesses to invest. India has been the second-largest source of Foreign Direct Investment (FDI) into the UK for five consecutive years, with a 28% year-on-year increase in investment stock at the end of 2023.
The UK and India currently have a trade relationship worth £41 billion, supporting over 600,000 jobs across both countries. A trade deal could unlock new opportunities for businesses and consumers in all regions and nations of the UK, support jobs, boost wages, and back high-growth sectors identified in the government’s upcoming Industrial Strategy, such as advanced manufacturing, clean energy, financial services, and professional and business services.
As the talks begin, both countries are optimistic about the potential for a mutually beneficial agreement that will drive economic growth and strengthen their strategic partnership.
