Union Commerce and Industry Minister Piyush Goyal met with the UK's Secretary of State for Business and Trade, Jonathan Reynolds, in London as part of a two-day visit aimed at advancing negotiations for a Free Trade Agreement (FTA) between India and the UK.

This high-level engagement underscores both nations’ commitment to deepening economic ties and expediting the conclusion of the long-pending FTA, which has been under negotiation since January 2022 and has now reached an advanced stage.

During his visit, Goyal described the talks as “productive,” emphasising their focus on strengthening bilateral trade and investment relations. The discussions come at a critical time, with both countries seeking to finalise the FTA amid shifting global trade dynamics, including recent US protectionist policies that are prompting nations to accelerate their own trade agreements.

The FTA negotiations, which resumed in February 2025 after an eight-month hiatus, have already completed 14 rounds of talks. Both sides are actively working to resolve the remaining contentious issues, particularly in three key areas: the FTA itself, a Bilateral Investment Treaty (BIT), and a Double Contribution Convention Agreement. The agreement is comprehensive, covering 26 chapters that include goods, services, investments, and intellectual property rights.

Key sticking points remain. India is pressing for greater access for its skilled professionals in the UK market, especially in IT and healthcare, as well as duty-free market access for several goods. The UK, meanwhile, is seeking substantial tariff reductions on products such as scotch whisky, electric vehicles, lamb, chocolates, and confectionery, and wants more opportunities for UK services in India, including in telecommunications, legal, and financial sectors.

The economic stakes are significant. Bilateral trade between India and the UK grew to $21.34 billion in 2023-24, up from $20.36 billion the previous year, and both nations are major investors in each other’s economies.

The FTA is expected to reduce or eliminate customs duties on a wide range of goods, simplify trade norms, and enhance investment flows, benefiting sectors such as textiles, apparel, footwear, marine products, and more.

Parallel to the FTA, negotiations on the BIT continue, with dispute resolution mechanisms being a major point of contention. The recent visit by Finance Minister Nirmala Sitharaman to London further highlighted the urgency and importance attached to these economic agreements.

Both Goyal and Reynolds have expressed optimism about reaching a “balanced, mutually beneficial, and forward-looking” deal that will foster mutual growth and prosperity. The talks are now in their final stages, with only a few outstanding issues left to resolve, raising hopes that the FTA could be concluded soon, marking a new chapter in India-UK economic relations.

ANI