News Brief
India, UK Set To Restart Stalled FTA Negotiations Post Modi-Starmer Meeting At The Sidelines Of G-20 Summit
Indian Prime Minister Narendra Modi with UK's Prime Minister Keir Starmer
In a significant breakthrough, India and the United Kingdom have announced plans to restart negotiations on their stalled Free Trade Agreement (FTA) in early 2025. The decision came after a bilateral meeting between Indian Prime Minister Narendra Modi and British Prime Minister Keir Starmer on the sidelines of G-20 Summit in Rio de Janeiro, Brazil.
FTA negotiations, initially launched in January 2022, were put on hold after the 14th round due to political changes and elections in both nations. India’s Ministry of Commerce confirmed that the resumed talks would build on earlier progress, focusing on bridging outstanding gaps to expedite the finalization of the trade pact.
“The dates for the Free Trade talks in early 2025 would be finalised through diplomatic channels at an early date. The FTA talks would resume the discussions from the progress achieved previously and seek to bridge the gaps for expeditiously closing the trade deal,” the statement read.
Key discussion areas shall include India’s demand for enhanced market access for skilled professionals and tariff-free entry for goods such as pharmaceuticals and textiles.
On the other hand, the UK is pushing for reduced import duties on products like Scotch whiskey and electric vehicles, along with expanded opportunities for UK services in India's legal, financial, and telecommunications sectors.
The two nations aim to elevate bilateral trade, which stood at $21.34 billion in 2023-24, to $30 billion by 2029-30.
In parallel, India and the UK are also negotiating a Bilateral Investment Treaty (BIT) to further strengthen economic ties and provide a framework for enhanced investment flows.
British Prime Minister Keir Starmer emphasized the mutual benefits of the potential trade deal, stating, “A new trade deal with India will support jobs and prosperity in the UK.”
India-UK FTA deal holds significant importance for India as it will serve as a template for upcoming trade pacts, including those with the EU (European Union) and the European Free Trade Association (EFTA) countries (viz., Iceland, Liechtenstein, Norway and Switzerland).
