The UK and India resumed negotiations for a "balanced, mutually beneficial and forward-looking” Free Trade Agreement (FTA) with an aim to significantly enhance the estimated £41 billion a year bilateral partnership. UK Secretary of State for Business and Trade Jonathan Reynolds arrived in New Delhi for talks with his Indian counterpart, Commerce and Industry Minister Piyush Goyal.
Reynolds said: “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. 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.
“Only a pragmatic government can deliver the economic growth and stability that the British public and British businesses deserve, delivering on the 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 and Goyal have now directed their respective team of negotiators to work together to resolve the outstanding issues in the agreement to ensure a “fair and equitable” trade deal for shared success. Speaking at the joint press conference, Goyal said it will be "a pathbreaking free trade agreement" that will give the businesses and people of both countries huge opportunities to grow the current $20 billion bilateral trade in merchandise to probably two to three times in the next 10 years.
Goyal said: "Both Jonathan and I have agreed to resume free trade agreement negotiations in a very cordial atmosphere.
“I would like to call this FTA a forward-looking, transparent, ambitious, equitable, balanced and mutually beneficial agreement, which will be a win-win for both our countries."
Reynolds asserted that the resumption of negotiations, stalled by general elections in both countries last year, will strengthen close and vibrant partnership between the UK and India.
He added: "It's an excellent place to start from, but both of us want to do more and that's why I am so pleased to be here today to kick-start these negotiations, to strengthen our close and vibrant relationship and unlock new opportunities for businesses and consumers across both the UK and India.
“At the centre of my government is a mission to deliver economic growth, to put pounds back in people's pockets, to support our businesses, to thrive, to create wealth and jobs and opportunity."
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Prime Ministers Keir Starmer and Narendra Modi had met on the sidelines of the G20 Summit in Rio de Janeiro, Brazil, in November 2024 to underline the importance of resuming trade negotiations at an early date.
According to officials, the UK-India partnership is built through collaboration on security and defence, new and emerging technologies, climate, health, education, research and innovation, green finance and people-to-people contacts. The collective aspiration to deliver economic growth and sustainable development is at the centre of this relationship.
Standard Chartered UK CEO and Head, Client Coverage UK, Saif Malik said: “We warmly welcome efforts to strengthen trade ties with one of the world’s most dynamic and fastest growing markets. As a leading global bank operating in India for over 160 years, the opportunities for British businesses are significant.
“Whether it’s 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.”
UK-India FTA negotiations were launched in January 2022 under then prime minister Boris Johnson, followed by 13 rounds of negotiations until December 2023. The 14th round of negotiations, which began in January last year, was underway when negotiations were paused by the UK in May 2024 as former prime minister Rishi Sunak declared elections.
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The talks in New Delhi this week opened against a backdrop of Indian commerce and artisans on a joint visit to the National Crafts Museum. The ministers also visited BT India’s office in Gurugram – one of the largest UK employers in India – to see first-hand how UK tech and Indian talent are helping solve global challenges.
As part of the visit, UK Investment Minister Poppy Gustafsson will address investors in two of India’s foremost business centres – Mumbai and Bengaluru – to sell the UK as the “best and most connected” place for Indian businesses to invest. The UK and India are currently the sixth and fifth largest global economies respectively, with investments supporting over 600,000 jobs across both countries.
(*With ANI Inputs)
