The proposed India-UK free trade agreement (FTA) forms the bedrock of UK’s commitment to take its trading relationship with India to the next level, Jonathan Reynolds, UK Business and Trade Secretary has said.
“I look forward to meeting Minister Goyal in New Delhi for the relaunch of talks on a trade deal that will support jobs and bring prosperity for both countries,” Reynolds said in a statement released by the British High Commission in India prior to his meeting with Commerce & Industry Minister Piyush Goyal on Monday.
Sectors such as advanced manufacturing, clean energy, financial services, and professional and business services, that have been identified in the UK government’s upcoming industrial strategy, could be backed by a UK-India free trade deal, the statement noted.
Reynolds will relaunch the trade talks with Goyal in New Delhi on Monday and there will be two days of focussed discussions.
The development is especially important for both countries in the light of US President Donald Trump proposing to impose stiff reciprocal tariffs on trade partners. This has created uncertainty for exporters who want to explore further diversification of markets.
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The India-UK trade deal will deliver economic growth and bring the two economies closer, benefiting businesses in both countries, the UK government statement said.
Simultaneously, UK Investment Minister Poppy Gustafsson will travel to Mumbai and Bengaluru, to promote the UK as the best place for Indian businesses to invest. “The UK offer for Indian investors has never been stronger, she will tell businesses, thanks to the government’s drive to restore economic stability and boost investor confidence as part of its Plan for Change,” the statement added.
Back on track
The India-UK FTA talks were launched under the Conservative government in January 2022. After Britain’s Labour Party, led by Prime Minister Keir Starmer, swept to power in the July 4 elections, the new government took some time to examine the contours and possibilities of the proposed FTA. But it is now ready to re-start the talks.
“The size of the economic prize is huge as trade between the UK and India continues to grow significantly. The visit underpins strong ambition from both sides to take the trading relationship to new heights,” the statement noted.
The UK and India are currently the sixth and fifth largest global economies respectively, with a trade relationship worth £41 billion which supports over 600,000 jobs across both countries, it highlighted.
India has been the second biggest source of FDI into the UK for five consecutive years in terms of projects and jobs created and the most recent stats show a 28 per cent year-on-year increase in investment, according to UK government figures.
