India and the UK have resumed talks on a potential Free Trade Agreement (FTA) after nearly a year. 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, in New Delhi.
| Company | Value | Change | %Change |
|---|
Alongside the FTA, negotiations will also cover a double taxation avoidance agreement (totalisation agreement) and a Bilateral Investment Treaty (BIT). Nearly two years ago, India had requested the UK to consider a social security agreement.
The agreement consists of 26 chapters, covering goods, services, investments, and intellectual property rights, with 21 of them already finalised. While business mobility will be discussed, immigration is not part of the negotiations, in line with other trade agreements.
Goyal also highlighted that an FTA would boost job creation in both countries, noting that Indian investments have already generated half a million jobs in the UK.
Also read: India-UK FTA to strengthen economic ties, generate employment: UK Trade Secretary Reynolds
Negotiations for the India-UK FTA began on 13 January 2022. By December 2023, 13 rounds of discussions had been completed, and the 14th round was underway when talks were paused in March 2024 due to general elections in both countries.
Bilateral trade between India and the UK stood at $21.34 billion in FY 2023-24, with an average import duty of 4.2% on goods from India into the UK.
Indian industry is seeking greater access for its skilled professionals from the IT, ITeS, and healthcare sectors in the UK, along with zero customs duty on several goods. Meanwhile, the UK is pushing for lower import duties on products such as Scotch whisky, electric vehicles, chocolates, and lamb meat. It is also seeking greater opportunities in India’s telecommunications, banking, insurance, legal, and financial services sectors.
