India and the UK are gearing up for the next round of talks regarding the proposed free trade agreement, with a government official indicating that negotiations are likely to take place in New Delhi in the third week of January. The delay in resuming discussions was attributed to the festive and holiday season, including Jewish holidays in October, Diwali in November, and Christmas and New Year at the end of the year.
The commerce ministry announced that trade officials are working on finalizing the date for the upcoming negotiations and plan to build upon the progress achieved in earlier rounds of talks that began in January 2022 under the leadership of then UK Prime Minister Boris Johnson. While the initial deadline of October 2022 coinciding with Diwali was missed due to political circumstances in the UK, negotiations have advanced chapter by chapter, with goods and services discussions reaching an advanced stage. Indian companies are optimistic about receiving market access for various goods in the UK, aiming for reduced or eliminated customs duties, while also seeking improved opportunities for Indian professionals in sectors like healthcare and information technology. On the other side, the UK is looking for concessions on import duties for products like scotch whisky, electric vehicles, chocolates, and lamb meat.
Recent trade data reveals that India and the UK were in a substantial trade partnership in 2023-24, with bilateral trade amounting to $21.34 billion. The trade included Indian exports worth $12.92 billion and imports worth $8.41 billion from the UK. This upcoming round of negotiations signifies a vital step in further enhancing the economic ties between the two nations, with both sides having specific goals and demands to address in the agreement.