India and the United Kingdom have restarted Free Trade Agreement (FTA) negotiations after a year-long break due to elections. Talks resumed on 24 February 2025, with UK Business and Trade Secretary Jonathan Reynolds meeting Indian Commerce Minister Piyush Goyal in New Delhi. Reynolds described the agreement as "genuinely beneficial" for both nations. Investment Minister Poppy Gustafsson also engaged with investors in Mumbai and Bengaluru, highlighting key growth sectors such as advanced manufacturing, clean energy, and financial services.
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Launched on 13 January 2022, the FTA negotiations have undergone 14 rounds. While substantial progress has been made, key issues remain, including visa provisions for Indian professionals and tariff structures. The UK seeks lower tariffs and improved access for services, while India is pushing for visa streamlining and exemption from the UK's upcoming carbon tax.
Bilateral trade between India and the UK currently stands at approximately £41 billion annually, supporting over 600,000 jobs. With India's economy projected to become the world's third-largest by 2028, both countries see significant potential for expansion. Reynolds described India's rapid GDP growth as a "huge future opportunity."
Despite optimism from both governments, challenges remain due to India's strict trade policies and previous negotiation hurdles. A successful agreement is expected to strengthen economic ties and deepen the partnership between the two nations.
Source: www.deccanherald.com