Highlights:
- India and UK have restarted Free Trade Agreement (FTA) negotiations, nearly a year after talks stalled in May 2024.
- Discussions will also cover the Bilateral Investment Treaty (BIT) and Double Contribution Convention Agreement.
- UK Business and Trade Secretary Jonathan Reynolds reaffirmed strong support from UK Prime Minister Keir Starmer.
- Both nations emphasize quality over speed in finalizing the trade deal.
- Business mobility, not immigration, to be linked with trade and investment under the FTA.
India and UK Revive FTA Talks Amid Renewed Bilateral Trade Focus
Union Minister of Commerce & Industry Piyush Goyal announced on February 24 that India and the United Kingdom have resumed negotiations for a Free Trade Agreement (FTA). The talks had previously stalled in May 2024 ahead of the UK general elections.
Goyal made the announcement after meeting UK Business and Trade Secretary Jonathan Reynolds, who is on a three-day visit to India. He confirmed that the discussions would simultaneously cover the FTA, Bilateral Investment Treaty (BIT), and the Double Contribution Convention Agreement.
“All options are on the table. We are in active negotiations on three different aspects—the FTA, the Bilateral Investment Treaty, and a Double Contribution Convention Agreement. And all three are in parallel and conjoined with each other,” Goyal stated at an event.
UK Reaffirms Commitment to Strengthening Trade Ties with India
Speaking on the FTA, Jonathan Reynolds emphasized India’s strategic importance to the UK in a rapidly evolving global economic landscape.
“India is a vital partner for the UK in an increasingly volatile and multipolar world. We have kickstarted negotiations for a UK-India FTA again. Through these talks, we want to secure a mutually beneficial agreement,” Reynolds said.
Focus on Quality Over Speed in Trade Deal Finalization
When asked whether the FTA will be concluded within 2025, Goyal stated that the timeline remains flexible.
“It’s never too early and never too late to conclude a good agreement. Neither should we rush into things, but it is always good to conclude fast. We will have speed but not haste,” he remarked.
Reynolds echoed a similar sentiment, stressing that quality takes precedence over speed. However, he confirmed that the trade agreement remains a top priority for the UK government, with strong backing from UK Prime Minister Keir Starmer and key cabinet members.
No Immigration Provisions in FTA; Business Mobility to Be Linked to Investments
Addressing queries about immigration provisions within the FTA, Goyal categorically dismissed the possibility.
“Immigration has never been a part of trade negotiations anywhere in the world. We deal with immigration separately from our FTA talks,” Goyal clarified.
Reynolds added that business mobility is distinct from immigration policies and will be structured around investment and service sector opportunities under the proposed FTA.
Expanding Trade and Investment Between India and the UK
Highlighting the strong business ties between India and the UK, Goyal pointed out that:
- Many Indian companies have significant investments in the UK.
- British businesses have a strong presence in India.
- A streamlined visa process will be essential to facilitate investment and trade expansion.
“If India and the UK wish to expand trade and investment, we have to be faster and more liberal in our issuance of business visas. Additionally, there is immense potential for boosting tourism between the two nations,” Goyal concluded.
Outlook: Strengthened Trade Relations with a Balanced Agreement
With both nations committed to resuming negotiations, the India-UK FTA could be a landmark trade agreement, fostering deeper economic integration, increased market access, and stronger investment flows. However, both sides remain cautious about prioritizing quality over urgency, ensuring that the deal aligns with long-term strategic interests.
