India, UK resume FTA talks, commit to 'balanced, mutually beneficial' agreement

India and the United Kingdom have resumed negotiations on a free trade agreement (FTA), their commerce ministers said on Monday, marking a renewed push to strengthen economic ties between the two nations.

Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds made the announcement in New Delhi, following discussions aimed at advancing the long-pending trade pact.

The move follows a meeting between Prime Minister Narendra Modi and his UK counterpart Keir Starmer on the sidelines of the G20 Summit in Rio de Janeiro in November 2024, where both leaders underscored the need to expedite negotiations.

"During the meeting, our discussions focused on advancing the India-UK Free Trade Agreement negotiations and ensuring that the agreement is balanced, ambitious and mutually beneficial," Goyal said in a post on X, formerly Twitter.

The India-UK FTA talks, launched in January 2022, aim to boost bilateral trade and investments by cutting tariffs and easing regulatory barriers. The UK is India's sixth-largest investor, with foreign direct investment (FDI) inflows of $35.3 billion between April 2000 and September 2024.

Bilateral trade between India and the UK rose to $21.34 billion in the 2023-24 financial year, up from $20.36 billion in 2022-23, according to official data.

Both sides have committed to a "balanced, mutually beneficial, and forward-looking" agreement, a joint statement from the two ministers said, adding that negotiators would work to resolve outstanding issues and ensure a fair deal.

The two countries share a close partnership through collaboration on security, defence, climate action, technology, and education.

“The strengthening of the trading relationship between our two countries has the potential to unlock opportunities for business and consumers across both our nations and build further on our already deep ties,” the statement read.