• By Ajeet Kumar
  • Mon, 24 Feb 2025 05:48 PM (IST)
  • Source:JND

New Delhi: India and the UK on Monday discussed advancing the India-UK free trade agreement (FTA) negotiations while ensuring that the pact is balanced, ambitious and mutually beneficial. In a post on X, Commerce and Industry Minister Piyush Goyal said both countries reaffirmed their commitment to strengthening trade and investment ties.

He held a meeting with UK Secretary of State for Business and Trade Jonathan Reynolds here. "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.

"Both sides have agreed to resume negotiations towards a balanced, mutually beneficial and forward-looking deal that delivers mutual growth and builds on the strengths of the two complementary economies," according to a joint statement released by the Ministry of Commerce.

Negotiators to work together to resolve the outstanding issues: Joint statement

"The two leaders directed the negotiators to work together to resolve the outstanding issues in the agreement to ensure a fair and equitable trade deal for shared success," it added.

The India-UK FTA negotiations were launched on January 13, 2022. The agreement is aimed at boosting bilateral trade and investments. In such pacts, two countries either eliminate or significantly reduce customs duties on maximum goods traded between them. They also ease norms for promoting trade in services and bilateral investments.

The bilateral trade between India and the UK increased to USD 21.34 billion in 2023-24 from USD 20.36 billion in 2022-23. The United Kingdom is the sixth largest investor in India. The country has received USD 35.3 billion in FDI between April 2000 and September 2024. 

Why is India-UK trade important?

The resumption of bilateral trade talks is seen as especially important amid rising global uncertainties, including the threat of reciprocal import tariffs from US President Donald Trump. Both countries plan to accelerate the negotiations which would include a bilateral free trade agreement and an investment treaty, Goyal said.

The India-UK trade discussions are the first between the two governments since the Labour Party came to power in the UK in July last year. Reynolds said securing a deal is a "top priority" for his government. UK Investment Minister Poppy Gustafsson is also expected to meet investors in the financial capital Mumbai and IT hub Bengaluru to urge Indian businesses to invest.

(With inputs from agencies)