India-UK Free Trade Agreement Talks to Resume in February in Delhi
India and the UK are likely to resume their talks on a free trade agreement (FTA) in February. The talks will take place in Delhi, where Jonathan Reynolds, the UK's Business and Trade Secretary, and his delegation will be traveling. The announcement comes after Jonathan Reynolds spoke at the India Global Forum’s 8th Annual Summit, held at House of Lords, London, in November. The talks had previously stalled after elections in both countries, but the momentum is now picking up again.
During a joint meeting with Indian Prime Minister Narendra Modi, UK Prime Minister Rishi Sunak had expressed hope that the FTA discussions would resume in the early part of 2025. This marks a significant step toward restoring the dialogue after a brief hiatus. The intention behind the FTA is to boost trade and investment between the two countries, which would, in turn, provide better market access for goods and services on both sides.
The FTA is likely to remove trade barriers by removing the tariffs on goods, thereby promoting a smooth exchange of goods between India and the UK. There is mutual desire from both the countries to extend their trade relationships and provide increased investment opportunities. One of the key areas where India is especially interested is enhancing market access for Indian professionals in sectors such as IT and health care. India has sought increased opportunities for working in the UK under UK legislation for Indian professionals, thus helping to foster increased cooperation between both nations.
Meanwhile, the UK wants the rates of duties paid on some export products to India, such as Scotch whisky, electric vehicles, chocolates, and various confectioneries, lowered. British media reports suggest that the UK is also keen on addressing the market access issue for some of its goods, which would allow UK businesses to operate more easily within India. This would not only help boost trade but also support the UK's broader global economic strategy post-Brexit.
The significance of this free trade agreement is to both the countries. Since the UK is now looking for new trade partners following its departure from the European Union, India wants to increase its status as a major world economy. For both countries, the free trade agreement is a way to further open up their economic horizons and deepen their bilateral ties.
While challenges exist, the continued commitment to these discussions points toward a mutually beneficial relationship between India and the UK, enhancing their cooperation in trade, investment, and broader geopolitical affairs. The resumption of talks in February is anticipated to be a critical moment for both countries to shape a prosperous economic future together.