India and the UK will resume discussions on a free trade agreement on Monday after nearly a year-long break due to elections in both countries.
The UK’s Business and Trade Secretary, Jonathan Reynolds, is in Delhi to meet India’s Trade Minister, Piyush Goyal, for two days of negotiations.
Reynolds described the trade deal as an obvious opportunity, given India’s expected rise to become the world’s third-largest economy soon.
Since 2022, the two nations have held multiple negotiation rounds, but no final agreement has been reached. Key issues include India’s high tariffs on Scotch whisky and its request for lower fees and easier visa rules for Indian students and professionals moving to the UK.
This is the first round of talks since the Labour Party took charge in the UK, and Reynolds has emphasized that securing the trade deal is a top priority for his government.
“Growth will be the guiding principle in our trade negotiations with India and I’m excited about the opportunities on offer in this vibrant market,” he said in a statement.
India’s trade negotiations have gained fresh momentum, particularly in light of U.S. President Donald Trump’s recent move to impose reciprocal tariffs on imports from various countries, including India.
The United Kingdom remains a key trade partner for Prime Minister Narendra Modi’s administration, which has set an ambitious goal of boosting exports to $1 trillion by the 2030 fiscal year.
Following a meeting between UK Labour leader Sir Keir Starmer and PM Modi at the G20 summit in Brazil, Britain announced in November last year that trade discussions would resume in the new year.
Currently, trade between the two nations stands at £41 billion ($52 billion), according to a UK government report. A potential trade deal could open up new economic opportunities, with London highlighting key sectors such as advanced manufacturing, clean energy, and professional and trade services.
Additionally, an agreement could expand market access for British exports, including automobiles, Scotch whisky, and financial services, which hold multi-billion-dollar potential.
Meanwhile, India is advocating for improved mobility rights for its skilled professionals and students, alongside a push for faster visa processing times to facilitate smoother movement between the two nations.