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India and UK Resume Trade Negotiations Aiming to Triple Bilateral Trade
Discussions on a free trade agreement mark a renewed effort to enhance economic ties.
Negotiations on a free trade agreement between India and the United Kingdom resumed today following a hiatus of several months.
The UK’s Secretary of State for Business and Trade, Jonathan Reynolds, met with India’s Commerce and Industry Minister, Piyush Goyal, in New Delhi to discuss this significant trade initiative.
The proposed trade agreement is designed to significantly enhance bilateral trade, targeting a threefold increase over the next decade.
Current bilateral trade stands at approximately $20 billion annually.
Minister Goyal referred to the potential agreement as "pathbreaking" and expressed optimism about dramatically escalating trade in merchandise between the two nations over the next ten years.
However, he refrained from providing specific timelines for the finalization of the agreement, emphasizing the importance of a well-structured deal that benefits both sides in the long term.
Reynolds supported Goyal’s views, designating the India-UK free trade agreement (FTA) as a top priority for the UK government.
He noted that such agreements require a long-term perspective, reinforcing their mutual economic and strategic significance.
A joint statement issued after the meeting confirmed the resumption of trade deal negotiations with a focus on a "balanced, mutually beneficial, and forward-looking" agreement.
The statement highlighted the potential for strengthened trading relations to create new opportunities for businesses and consumers in both countries while building upon the existing robust ties.
Minister Goyal indicated that discussions are being held on multiple fronts, including the FTA, a Bilateral Investment Treaty (BIT), and a Double Contribution Convention Agreement, emphasizing that negotiations on these matters are interconnected and progressing concurrently.
Regarding immigration, Goyal stated that immigration is not a topic typically addressed in trade negotiations, asserting that India has never discussed immigration in its trade talks.
Reynolds similarly indicated that the UK values its strong relationships with Indian nationals studying or working in the UK, clarifying that business mobility should be viewed separately from immigration issues.
The government-to-government talks for the free trade agreement between India and the UK commenced on January 13, 2022. Free trade agreements generally aim to eliminate or reduce tariffs on goods traded between the participating countries.
In the latest fiscal year, bilateral trade between India and the UK experienced an increase, reaching $21.34 billion for 2023-24, up from $20.36 billion in the previous year.
The UK currently stands as India’s sixth largest investor, with foreign direct investment amounting to $35.3 billion received from the UK between April 2000 and September 2024.
The UK’s Secretary of State for Business and Trade, Jonathan Reynolds, met with India’s Commerce and Industry Minister, Piyush Goyal, in New Delhi to discuss this significant trade initiative.
The proposed trade agreement is designed to significantly enhance bilateral trade, targeting a threefold increase over the next decade.
Current bilateral trade stands at approximately $20 billion annually.
Minister Goyal referred to the potential agreement as "pathbreaking" and expressed optimism about dramatically escalating trade in merchandise between the two nations over the next ten years.
However, he refrained from providing specific timelines for the finalization of the agreement, emphasizing the importance of a well-structured deal that benefits both sides in the long term.
Reynolds supported Goyal’s views, designating the India-UK free trade agreement (FTA) as a top priority for the UK government.
He noted that such agreements require a long-term perspective, reinforcing their mutual economic and strategic significance.
A joint statement issued after the meeting confirmed the resumption of trade deal negotiations with a focus on a "balanced, mutually beneficial, and forward-looking" agreement.
The statement highlighted the potential for strengthened trading relations to create new opportunities for businesses and consumers in both countries while building upon the existing robust ties.
Minister Goyal indicated that discussions are being held on multiple fronts, including the FTA, a Bilateral Investment Treaty (BIT), and a Double Contribution Convention Agreement, emphasizing that negotiations on these matters are interconnected and progressing concurrently.
Regarding immigration, Goyal stated that immigration is not a topic typically addressed in trade negotiations, asserting that India has never discussed immigration in its trade talks.
Reynolds similarly indicated that the UK values its strong relationships with Indian nationals studying or working in the UK, clarifying that business mobility should be viewed separately from immigration issues.
The government-to-government talks for the free trade agreement between India and the UK commenced on January 13, 2022. Free trade agreements generally aim to eliminate or reduce tariffs on goods traded between the participating countries.
In the latest fiscal year, bilateral trade between India and the UK experienced an increase, reaching $21.34 billion for 2023-24, up from $20.36 billion in the previous year.
The UK currently stands as India’s sixth largest investor, with foreign direct investment amounting to $35.3 billion received from the UK between April 2000 and September 2024.
