The UK and India have resumed free trade agreement (FTA) negotiations in continuation of Round 14, which had been shelved as India’s General Election begins with its first phase this week.
The UK’s Department for Business and Trade (DBT) said officials from New Delhi are holding discussions with its negotiators in London this week in pursuit of an “ambitious” outcome. There are hopes that an FTA can be signed by Prime Minister Rishi Sunak with his Indian counterpart after the Indian election results are declared on June 4 and before the UK General Election – expected later this year.
A DBT spokesperson said: “The UK and India continue to work towards an ambitious trade deal that work for both countries.
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“While we do not comment on the details of negotiations, we are clear that we will only sign a deal that is fair, balanced, and ultimately in the best interests of the British people and the economy.”
In New Delhi, while speaking to reporters about India’s diversifying exports, Commerce Secretary Sunil Barthwal told reporters that “there are very few pending issues left in the negotiations”.
“A couple of key priority issues to seal the deal are being ironed out to have a balanced outcome,” notes the Indian Commerce Ministry.
The UK-India FTA negotiations kick-started in January 2022 and are aimed at significantly enhancing the bilateral trade relationship, currently worth around £38.1 billion a year. The fourteenth round of negotiations began two years on in January 2024, with both sides trying to reach an agreement before the Indian general election.
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The UK wants India to significantly reduce tariffs on UK exports such as food, cars and whisky that can currently be as high as 150 per cent. India is negotiating for fairness of mobility for its skilled professionals, besides market access for several goods at zero customs duty.
While UK Secretary of State for Business and Trade Kemi Badenoch has said the complexity of the trade agreement is to be expected with a country the size of India, her Indian counterpart Piyush Goyal has highlighted the goal of striking a “balanced, fair and equitable” deal.
