India and the United Kingdom have resumed negotiations on a Free Trade Agreement (FTA), aiming for a balanced and mutually beneficial deal that strengthens economic ties between the two nations, according to a statement from India’s Ministry of Commerce and Industry.
The announcement was made by India’s Union Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds, who is currently in Delhi for discussions. The renewed negotiations follow a meeting between Prime Minister Narendra Modi and his UK counterpart Keir Starmer at the G20 Summit in Brazil’s Rio de Janeiro in November 2024, where both leaders emphasized the importance of resuming trade talks at an early date.
Commitment to Strengthening Economic Ties
Both India and the UK have expressed confidence in making significant progress toward finalizing an agreement that fosters trade and investment. Minister Goyal stated that the negotiations reflect the aspirations of both nations to enhance economic cooperation and mutual prosperity.
“I am confident that we will be able to make rapid progress in meeting our collective aspirations for trade, investment, and economic growth,” Goyal said. He described the FTA as a forward-looking, transparent, and ambitious agreement aimed at benefiting businesses and consumers in both countries.
Secretary Reynolds reiterated the UK government’s commitment to strengthening trade ties with India, stating, “Securing a trade deal with what is soon-to-be the third-largest economy in the world is a key priority. That is why I am in New Delhi with our top negotiating team to demonstrate our dedication to advancing these discussions.”
Key Focus Areas of the Agreement
The India-UK trade partnership encompasses various sectors, including security and defense, technology, climate initiatives, health, education, and research. The two nations seek to enhance their economic collaboration by addressing outstanding issues in the FTA negotiations to ensure a fair and equitable trade agreement.
According to a joint statement, the proposed deal aims to build on the strengths of both economies, creating opportunities for businesses and consumers. Negotiators from both countries have been directed to resolve pending concerns to facilitate the agreement’s completion.
Resumption of Talks After Previous Delays
The FTA discussions were initially launched in January 2022 under the UK’s Conservative government but were put on hold when former Prime Minister Rishi Sunak called for a general election. The current UK government has prioritized resuming negotiations to accelerate economic growth through international partnerships.
Reynolds emphasized that the UK is focused on fostering economic development by working closely with key global partners such as India. “We are committed to unlocking new opportunities for businesses in both nations and ensuring that this agreement is ambitious and mutually beneficial,” he added.
As discussions progress, both sides aim to finalize a trade agreement that supports economic growth and strengthens bilateral relations between India and the UK.
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