India, UK Resume Negotiations on Landmark Free Trade Agreement

India and the United Kingdom have officially resumed negotiations on a long-anticipated Free Trade Agreement (FTA), aiming to establish a "balanced, mutually beneficial, and forward-looking" deal. The announcement was made jointly by India’s Commerce and Industry Minister Piyush Goyal and the UK’s Secretary of State for Business and Trade, Jonathan Reynolds, who is currently in the national capital.

The decision follows discussions between Prime Minister Narendra Modi and his British counterpart Keir Starmer on the sidelines of the G-20 Summit in Rio de Janeiro, Brazil, in November 2024. Both leaders underscored the urgency of reviving trade negotiations to bolster economic ties between the two nations.

In an official release, the Indian Ministry of Commerce stated that the negotiations are anchored in the long-standing partnership between India and the UK, built on cooperation in security, defense, technology, climate, health, education, and research. The trade agreement is expected to accelerate economic growth and sustainable development for both countries.

“Both sides have agreed to resume negotiations towards a balanced, mutually beneficial, and forward-looking deal that delivers mutual growth and builds on the strengths of the two complementary economies,” the statement read.

Goyal and Reynolds have directed their respective teams to resolve outstanding issues in the agreement, ensuring a fair and equitable trade deal. Speaking at a joint press conference, Goyal expressed confidence in the potential of the FTA, calling it a "pathbreaking" agreement that could significantly expand the current USD 20 billion bilateral trade in merchandise, possibly doubling or tripling it within the next decade.

Both sides have decided to leverage the groundwork laid by 14 previous rounds of negotiations. Goyal emphasized that the agreement would be "forward-looking, transparent, ambitious, equitable, balanced, and mutually beneficial."

Reynolds echoed this sentiment, stressing that the FTA has the potential to unlock new opportunities for businesses and consumers in both countries. “It’s an excellent place to start from, but both of us want to do more. That’s why I am so pleased to be here today to kick-start these negotiations, to strengthen our close and vibrant relationship, and unlock new opportunities for businesses and consumers across both the UK and India,” he said.

Goyal assured that the negotiations would proceed “quickly without being hurried,” underscoring the commitment to ensuring a robust and comprehensive agreement. His office reiterated this stance in a post on X, stating that the teams would focus on "speed and not haste" in finalizing the agreement.

India and the UK are the world’s fifth and sixth-largest economies, respectively, making this trade deal a crucial economic milestone. The FTA negotiations were first launched on January 13, 2022. Thirteen rounds were completed by December 2023, and the 14th round had commenced in January 2024. However, negotiations were abruptly paused by the UK in May 2024 due to their general elections.