India and UK Restart FTA Talks, Set Goal to Triple Trade in a Decade

India and the UK announced on Monday that they are resuming negotiations for the proposed Free Trade Agreement (FTA), which aims to double or even triple bilateral trade from the current USD 20 billion within the next decade.

Goyal held a meeting with UK Secretary of State for Business and Trade Jonathan Reynolds here. | Photo: X (@PiyushGoyal)

The announcement was made by India's Commerce and Industry Minister, Piyush Goyal, and the UK’s Secretary of State for Business and Trade, Jonathan Reynolds.

"Today, the Republic of India and the United Kingdom (UK) have resumed negotiations towards a trade deal between our two countries," a joint statement released following the meeting stated.

Both parties have agreed to restart discussions aimed at achieving a balanced, forward-thinking agreement that fosters mutual growth and capitalizes on the strengths of their complementary economies.

Enhancing the trade relationship could unlock new opportunities for businesses and consumers in both nations while further deepening their already strong ties, the statement noted.

Addressing the media, Goyal described the pact as "pathbreaking," highlighting its potential to expand the current USD 20 billion bilateral merchandise trade by two to three times over the next decade.

Regarding the timeline for concluding negotiations, he emphasized that a good agreement is never "too early" or "too late," as such deals are designed for long-term benefits.

"One has to crystal gaze may be 20-30-50 years into the future and make a robust agreement which is a win-win situation for both sides and therefore neither should we rush into things, but it's always to conclude fast. So we will have speed but not haste," he added.

Reynolds stated that securing such agreements is the UK's top priority, as they are focused on the long-term future.

When asked if negotiations for the Bilateral Investment Treaty (BIT) would be finalized alongside the Free Trade Agreement (FTA), Goyal responded that both nations are actively engaged in discussions on three fronts: the FTA, BIT, and a Double Contribution Convention Agreement.

"And all three are in parallel and conjoint with each other," he said.

Goyal also stated that immigration has never been included in trade negotiations anywhere in the world and that India has "never ever" brought up immigration in any FTA discussions.

Regarding this, Reynolds stated that the UK is pleased to welcome, "the huge and important relationship we have with people coming from India to UK whether to study, whether to be part of the businesses and obviously business mobility is a separate issue to immigration".

Goyal mentioned that Indian students pursue their education in multiple countries, including the US, UK, Canada, New Zealand, and Australia. 

In nearly all these nations, to promote education, stimulate business, and attract more individuals, governments "do give a certain period of time for students to gain practical experience to work in their country but that is short-term business work visas . It has nothing to do with immigration as such," he added.

The India-UK Free Trade Agreement (FTA) negotiations commenced on January 13, 2022, with the objective of enhancing trade and investment between the two nations.

Such agreements typically involve the removal or substantial reduction of customs duties on a majority of traded goods, along with the relaxation of regulations to facilitate trade in services and bilateral investments.

India-UK bilateral trade grew from USD 20.36 billion in 2022-23 to USD 21.34 billion in 2023-24.

The UK ranks as the sixth-largest investor in India, with Foreign Direct Investment (FDI) inflows amounting to USD 35.3 billion between April 2000 and September 2024.

(This Article was originally published by Business Standard)