Union Minister of Commerce and Industry, Piyush Goyal with UK Trade Secretary Jonathan Reynolds.
New Delhi: India and the United Kingdom have agreed to restart negotiations for a Free Trade Agreement (FTA), following discussions between Union Minister of Commerce and Industry Piyush Goyal and his UK counterpart Jonathan Reynolds in New Delhi.
The decision stems from a meeting between Prime Minister Narendra Modi and UK Prime Minister Keir Starmer on the sidelines of the G-20 Summit in Rio de Janeiro, Brazil, in November last year, where both leaders emphasized the importance of resuming trade talks at the earliest.
Goyal stated that all options remain open, and negotiations are actively progressing on three interconnected aspects: the FTA, the Bilateral Investment Treaty, and a Double Contribution Convention Agreement. He underscored that while India is committed to progressing swiftly, it will not rush into an agreement. "We will have speed but not haste," he remarked when asked whether a deadline had been set for concluding the deal.
Reynolds highlighted India’s significance as a key partner for the UK in a rapidly changing global landscape. "We have kickstarted negotiations for the UK-India FTA again. Through these talks, we seek a mutually beneficial agreement," said the UK Business and Trade Secretary, who is on a three-day visit to India.
Emphasizing the priority status of the agreement for the UK government, Reynolds noted that while there is a sense of urgency, the focus is on securing a high-quality trade deal rather than merely expediting the process. "This is a top priority for the UK government and has strong support from the UK Prime Minister and key cabinet colleagues," he said.
FTA negotiations between India and the UK began in January 2022 under the previous Conservative-led government, and the current Labour Party government has reaffirmed its commitment to continuing the discussions.
The agreement encompasses 26 chapters covering trade in goods and services, investments, and intellectual property rights. The UK is particularly seeking tariff reductions on products such as electric vehicles and Scotch whisky, while India is advocating for relaxed visa rules to facilitate the entry of Indian professionals into the UK’s services sector.
Beyond trade, India and the UK share a strong bilateral partnership spanning security, defence, emerging technologies, climate initiatives, healthcare, education, research, innovation, and green finance. The relationship is further strengthened by extensive people-to-people ties.
Both sides have reiterated their commitment to resuming negotiations toward a balanced and forward-looking trade agreement that promotes mutual growth and leverages the strengths of the two complementary economies.
With IANS inputs