India and the United Kingdom are poised to resume talks for their proposed Free Trade Agreement (FTA) in early 2025. This follows an announcement by British Prime Minister Keir Starmer after a bilateral meeting with Indian Prime Minister Narendra Modi at the G20 Summit in Brazil. The resumption of trade discussions comes after a pause in talks due to political transitions in both countries, but the two leaders have reaffirmed their commitment to a comprehensive and mutually beneficial agreement.
A Positive Step Toward Enhanced Trade Relations
The India-UK FTA negotiations initially began in January 2022, marking a significant step in strengthening bilateral economic ties. However, the process has faced delays, notably with the 14th round of talks stalling in the wake of both nations entering their respective election cycles. Despite these setbacks, the momentum for the FTA has remained strong, underscored by the recent pledge from both countries to accelerate the discussions.
Following their meeting on the sidelines of the G20 Summit in Rio de Janeiro, the UK government confirmed that trade negotiations will resume in the new year. On Wednesday, the Indian Ministry of Commerce welcomed this announcement, emphasizing that both countries are committed to working together to address the remaining issues and ensure a balanced and forward-looking agreement. “We look forward to closely working with the UK’s negotiating team to address remaining issues to mutual satisfaction,” stated the Ministry in an official statement.
Also Read No pause in FTA negotiations, break only for Peru pact EXCLUSIVE: India-Brazil partnership expands across trade, energy and defence ahead of PM Modi’s G20 visit Peru sets sights on free trade agreements with India in 2025- Here’s what this means for global trade India may seek a deal to blunt Trump’s tariff threat
Areas of Focus for Negotiations
The proposed India-UK FTA covers a broad range of areas, with 26 chapters under discussion, including goods, services, investments, and intellectual property rights. Both countries have identified specific sectors where they seek mutual benefits.
India’s industry is particularly focused on securing better access for its skilled professionals, especially in sectors like IT and healthcare, in the UK market. Additionally, India is seeking market access for several goods at nil customs duties, an issue that remains pivotal in the negotiations. On the other hand,
» Read More
