After an eight-month hiatus, India and the United Kingdom will resume negotiations on their proposed Free Trade Agreement (FTA) in New Delhi from February 24, an official confirmed.
UK Secretary of State for Business and Trade, Jonathan Reynolds, will visit India for the talks and hold a bilateral meeting with Commerce and Industry Minister Piyush Goyal.
The India-UK FTA negotiations began on January 13, 2022. So far, 13 rounds have been completed, with the 14th round commencing on January 10, 2024. However, discussions were paused in May 2024 due to elections in the UK. The upcoming negotiations aim to build on prior progress and resolve outstanding differences to expedite the finalization of the trade pact.
The agreement is expected to enhance bilateral trade and investment by reducing or eliminating customs duties on a wide range of goods. It will also facilitate trade in services and promote bilateral investments.
Indian industries are seeking greater access for skilled professionals—particularly in IT and healthcare—within the UK market, alongside duty-free market entry for several goods. Meanwhile, the UK is pushing for significant tariff reductions on products such as Scotch whisky, electric vehicles, lamb meat, chocolates, and confectionery items. Additionally, Britain is looking to expand its presence in India’s services sector, particularly in telecommunications, legal, and financial services, including banking and insurance.
The negotiations could gain further momentum following Finance Minister Nirmala Sitharaman’s recent announcement in the Union Budget 2025-26, proposing to raise the foreign direct investment (FDI) limit in the insurance sector from 74% to 100% as part of financial sector reforms.
Both nations are also in discussions over a Bilateral Investment Treaty (BIT), which aims to provide greater security and transparency for investors.
