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“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 ahead of his meeting with Commerce & Industry Minister Piyush Goyal on Monday.
According to the statement, the FTA is expected to bolster key sectors such as advanced manufacturing, clean energy, financial services, and professional and business services-areas that align with the UK government’s forthcoming industrial strategy.
Read more: Indian industry opposes Oman’s demand for higher market for petrochemicals in potential FTA
Reynolds is set to hold discussions with Goyal in New Delhi over two days, marking a fresh push towards finalising the trade agreement. The development is particularly significant given the uncertainty caused by recent global trade policies, including US President Donald Trump’s proposal to impose reciprocal tariffs on trade partners. This has prompted businesses to explore diverse market opportunities, the statement noted.
Meanwhile, UK Investment Minister Poppy Gustafsson will be visiting Mumbai and Bengaluru to advocate for the UK as an attractive investment destination for Indian businesses.
“The UK offer for Indian investors has never been stronger,” she is expected to tell businesses, citing efforts to enhance economic stability and investor confidence under the government’s Plan for Change.
Read more: DPIIT Secretary: Industry’s call for tariff hikes during FTA negotiations must be questioned
India-UK FTA Talks Back On Track
The India-UK FTA negotiations were initiated under the previous Conservative government on January 2022. The FTA talks were paused in May 2024 ahead of elections in India & UK.
Following the Labour Party’s electoral victory on July 4, led by Prime Minister Keir Starmer, the new administration took time to review the proposed agreement before resuming discussions.
“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.
Read more: Developing economies set for weakest growth since 2020, India steady at 6.7% in FY26: World Bank
Currently, the UK and India rank as the sixth and fifth largest global economies, respectively. Their trade relationship is valued at £41 billion and supports over 6,00,000 jobs across both nations. The UK government further highlighted India’s position as the second-largest source of foreign direct investment (FDI) into the UK over the past five years, with a 28% year-on-year increase in investment.
After news on FTA talks resuming, the stock of United Spirits was in focus due to the possibility of reduction in duty on imported scotch.