India and UK to Resume Free Trade Agreement Negotiations in January
India and the UK are set to resume negotiations on their proposed free trade agreement (FTA) in the third week of January in New Delhi. This follows a bilateral meeting between Prime Ministers Narendra Modi and Keir Starmer on Tuesday, where they announced the resumption of talks early next year.
The Indian government aims to begin negotiations by the third week of January, or even sooner. The initial plan was to resume talks after the elections this year, but the festive and holiday season caused a delay.
"We want to hold the next round (of talks) here in Delhi. Last time, we had gone for it," said a government official. The last round of negotiations was held in the UK in April, before both countries entered their respective election cycles.
The commerce ministry confirmed that trade officials will soon finalize the date for the next round of talks and continue discussions based on the progress made previously. Negotiations for the agreement began in January 2022, when Boris Johnson was the UK Prime Minister.
The initial deadline for the agreement was set for October 2022, coinciding with Diwali. However, political developments in the UK delayed the conclusion of talks. Chapter-wise textual negotiations are nearly complete, and negotiations on goods and services are at an advanced stage, according to the commerce ministry.
Indian companies hope to gain duty-free market access for several goods in the UK under the agreement. They also seek better access for Indian professionals in the UK's healthcare and information technology sectors. The UK, on the other hand, has requested a reduction in import duties on scotch whisky, electric vehicles, chocolates, and lamb meat.
The UK was India's 16th largest trading partner in 2023-24 (April-March). Bilateral trade between the two countries amounted to $21.34 billion last year, with India exporting goods worth $12.92 billion and importing goods worth $8.41 billion.