India and the UK have officially restarted India-UK free trade talks, aiming to finalize an agreement after a year-long pause. UK’s business and trade secretary Jonathan Reynolds met Indian Commerce Minister Piyush Goyal in New Delhi to begin discussions.
Both sides emphasized the need for a fair, ambitious, mutually beneficial trade pact. Officials from both nations have conducted over a dozen negotiations since 2022, but disagreements over key issues have stalled progress.
India seeks reduced tariffs on its exports and better visa rules for professionals, while the UK wants lower duties on Scotch whisky and automotive products. Reynolds called trade expansion a top priority for the labor government, stating that economic growth would guide these negotiations.
India, projected to become the world’s third-largest economy, sees a deal as critical for increasing exports soon. The two ministers held a joint press conference for the India-UK trade talks but avoided setting a deadline for finalizing the agreement.
Previous deadlines under Boris Jhonson and Liz Truss passed without resolution, and both sides now aim for a more cautious approach. Trade relations between India and the UK currently stand at £41 billion, with the hope of increasing this figure through the agreement.
London has identified sectors such as clean energy, advanced manufacturing, and financial services as key growth areas. Meanwhile, New Delhi wants faster visa processing for professionals and fairer policies for Indian workers in Britain.
Goyal clarified that immigration issues were not part of the discussions, while Rylonds stated that business mobility remained a separate concern. During his visit, Rynolds plans to meet business leaders in Gurugram, Mumbai, and Bengaluru.
The India-UK trade talks come as India accelerates trade agreements worldwide, including a $100 deal with the European Free Trade Association. New Delhi is also preparing to restart stalled negotiations with the European Union this year.
