“The FTA talks would resume the discussions from the progress achieved previously and seek to bridge the gaps for expeditiously closing the trade deal,” the commerce and industry ministry said in a statement.
An announcement on the issue was made following a meeting between Prime Minister Narendra Modi and his British counterpart Keir Starmer on the sidelines of the G-20 summit in Brazil. It was the first meeting between the two leaders.
“We welcome the announcement by the UK to relaunch the India-UK Free Trade talks in the new year,” the ministry said.
Noting the importance for securing a balanced, mutually beneficial and forward looking FTA, India said that it looks forward to closely working with the UK’s negotiating team to address remaining issues to mutual satisfaction. The UK is a priority country for the achievement of New Delhi’s ambitious $1 trillion export target by FY30. India’s exports to the UK are expected to reach $30 billion by then.
“The FTA talks would resume the discussions from the progress achieved previously and seek to bridge the gaps for expeditiously closing the trade deal,” the ministry said.As many as 14 rounds of negotiations have taken place between the two sides with the last round of negotiations taking place in March.The two have been negotiating a trade pact since January 2022 and they had aimed to concluded by Diwali in October 2022 but was delayed due to political changes in the UK and elections in both nations.
As per the statement, India’s trade relationship with the UK “continues to grow steadily, showcasing immense potential for deeper collaboration and strategic engagement”.
In April-September 2024, India’s exports to the UK grew 12.38%, reaching $7.32 billion, compared to $6.51 billion during the same period in 2023. Mineral fuels, machinery, and precious stones, pharmaceuticals, apparels, iron and steel and chemicals lead India’s export basket to the UK, contributing a 68.72% share of total exports.