India and the United Kingdom have formally resumed negotiations for a Free Trade Agreement (FTA), nearly a year after talks stalled in May 2024 ahead of the UK general elections. The announcement was made by Union Minister of Commerce & Industry Piyush Goyal on February 24, following his meeting with UK Business and Trade Secretary Jonathan Reynolds, who is currently on a three-day visit to India.
Key Areas of Discussion
According to Piyush Goyal, both nations are actively engaging in negotiations across three key aspects—the Free Trade Agreement (FTA), the Bilateral Investment Treaty (BIT), and a Double Contribution Convention Agreement. He highlighted that these negotiations are being conducted in parallel and are interconnected, reflecting a comprehensive approach to strengthening trade and investment ties between India and the UK.
Jonathan Reynolds also emphasized the significance of restarting trade negotiations, describing India as a vital partner for the UK in an increasingly volatile and multipolar world. He reiterated the UK’s commitment to securing a mutually beneficial trade agreement through these renewed discussions.
No Fixed Timeline, But Focus on Speed
When asked about a potential timeline for finalizing the FTA, Goyal remained non-committal, stating that trade agreements should not be rushed but also should not face unnecessary delays. “It’s never too early and never too late to conclude a good agreement,” he said, adding that while India aims for speed, there will be no haste in concluding the deal.
The resumption of these discussions marks a renewed effort by both nations to deepen economic cooperation, with the potential to unlock greater trade opportunities and investment flows between India and the UK.
