New Delhi

Union Minister of Commerce and Industry, Piyush Goyal, announced on Monday that India and the UK have agreed to resume negotiations for a Free Trade Agreement (FTA) following a meeting with his UK counterpart Jonathan Reynolds.

This decision stems from discussions between Prime Ministers Narendra Modi and Keir Starmer on the sidelines of the G-20 Summit in Rio de Janeiro, Brazil, last November, where they emphasised the importance of restarting trade negotiations.

Goyal explained that all options are on the table, with active negotiations progressing on three fronts: the FTA, the Bilateral Investment Treaty, and a Double Contribution Convention Agreement, all of which are interlinked.

Reynolds, the UK's Business and Trade Secretary, stated, “India is a vital partner for the UK in an increasingly volatile and multipolar world. We have kickstarted negotiations for the UK-India FTA again, aiming for a mutually beneficial agreement."

Goyal clarified that India would not rush into a trade deal, noting, “We will have speed but not haste,” when asked about a deadline for signing the agreement.

Reynolds, however, highlighted the urgency of the negotiations for the UK government, with strong support from Prime Minister Rishi Sunak and key cabinet colleagues. "For the UK, it is about the quality of the trade agreements, rather than just the speed," he added.

India and the UK have been negotiating an FTA since January 2022, under the previous Conservative-led government, with the current Labour Party government expressing its commitment to continue the talks.

The agreement comprises 26 chapters covering goods, services, investments, and intellectual property rights. While the UK seeks tariff reductions on items like electric vehicles and Scotch whisky, India is focused on securing easier visa access for professionals in the services sector.

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Both nations share a close partnership, collaborating on security, defence, technology, climate, health, education, and green finance. At the heart of this relationship is their shared goal of promoting economic growth and sustainable development.

The two countries are working towards a balanced, mutually beneficial, and forward-looking deal that capitalises on their complementary economic strengths.