India and UK to resume FTA negotiations to "address remaining issues” in 2025
After months of suspension because of general elections in both countries, negotiations for a free trade agreement (FTA) between India and the UK will restart in the new year.
After months of suspension because of general elections in both countries, negotiations for a free trade agreement (FTA) between India and the UK will restart in the new year.Following a meeting on the fringes of the G-20 conference in Brazil between Prime Minister Narendra Modi and his British counterpart Keir Starmer, an announcement was made. The two leaders were meeting for the first time.“Both leaders underlined the importance of resuming the Free Trade Agreement negotiations at an early date and expressed confidence in the ability of the negotiating teams, to address the remaining issues to mutual satisfaction, leading to a balanced, mutually beneficial and forward looking Free Trade Agreement,” said India’s Ministry of External Affairs in a statement on Tuesday.Since January 2022, India and the UK have been negotiating a trade deal. When Boris Johnson resigned as prime minister of the United Kingdom, an agreement that was ambitiously planned to be finalized by Diwali in October 2022 was postponed.When Rishi Sunak succeeded Johnson as UK leader, both parties made significant strides, but FTA negotiations were postponed because of elections in both countries. A new Labour government won power in the UK in July after Modi was sworn in for his third term as prime minister in June.“A new trade deal with India will support jobs and prosperity in the UK – and represent a step forward in our mission to deliver growth and opportunity across our country,” Starmer said in a statement.Before India's pre-election model code of conduct went into effect in mid-March, the final round of negotiations took place in March. Following that, FTA discussions were conducted in May to discuss the remaining concerns, especially those pertaining to services.“The Business and Trade Secretary announced the UK’s commitment to relaunching talks with Free Trade Agreement partners in July…The Department for Business and Trade will soon unveil the government’s new Trade Strategy, aligned with the Industrial Strategy, to help inform future trade talks and achieve long-term sustainable, inclusive and resilient growth through trade,” said Downing Street in a statement.Senior officials and ministers were instructed by Modi and Starmer to expedite the execution of the many understandings that comprise the Comprehensive Strategic Partnership between the United Kingdom and India.India's fourth-largest export market and fourteenth-largest trading partner is the United Kingdom. Bilateral trade between the two nations was $11.5 billion in the first half of this fiscal year.
