India, UK to relaunch FTA talks in 2025, 'address remaining issues'

India and the United Kingdom (UK) will resume talks for a free trade agreement (FTA) in the new year, following months of pause due to general elections in both countries.

An announcement 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.

“Both leaders underlined the importance of resuming the Free Trade Agreement negotiations at an early date and expressed confidence in the ability of the negotiating teams, to address the remaining issues to mutual satisfaction, leading to a balanced, mutually beneficial and forward looking Free Trade Agreement,” said India’s Ministry of External Affairs in a statement on Tuesday.
  
India and the UK have been negotiating a trade agreement since January 2022. A deal was ambitiously scheduled to be concluded by Diwali in October 2022 but was delayed when Boris Johnson resigned as UK’s Prime Minister.

Both sides made substantial progress when Rishi Sunak became UK’s leader after Johnson, but FTA talks were delayed due to elections in both nations. Modi was sworn in for his third term as Prime Minister in June and a new Labour government in the UK took over in July.

“A new trade deal with India will support jobs and prosperity in the UK – and represent a step forward in our mission to deliver growth and opportunity across our country,” Starmer said in a statement.

The last round of negotiations took place in March, before the pre-election model code of conduct kicked in mid-March onwards in India. Thereafter, FTA deliberations on the outstanding issues, including areas related to services were held in May.

“The Business and Trade Secretary announced the UK’s commitment to relaunching talks with Free Trade Agreement partners in July…The Department for Business and Trade will soon unveil the government’s new Trade Strategy, aligned with the Industrial Strategy, to help inform future trade talks and achieve long-term sustainable, inclusive and resilient growth through trade,” said Downing Street in a statement.

Modi and Starmer directed their ministers and senior officials to work towards faster implementation of the various understandings that form part of the India-UK Comprehensive Strategic Partnership.

The UK is India’s 14 largest trade partner and the fourth largest export market. In the first six months of this financial year, bilateral trade between both countries stood at $11.5 billion.

Source: Business Standard