India, UK trade ministers discuss plan to take forward talks on proposed FTA

Commerce Minister Piyush Goyal Advances India-UK FTA Talks at G7 Meeting

New Delhi: Commerce and Industry Minister Piyush Goyal met UK Secretary of State for Business and Trade Jonathan Reynolds in Italy to discuss advancing negotiations on the proposed free trade agreement (FTA), according to an official statement on Wednesday.

The bilateral meeting occurred on the sidelines of the G7 Trade Ministers' gathering in Reggio Calabria, Italy.

The India-UK FTA talks, initiated in January 2022, paused during respective general election cycles after the 14th round.

"Goyal congratulated Mr. Jonathan Reynolds on his appointment and discussed enhancing bilateral economic relations, including plans to move forward with FTA discussions," stated the commerce ministry.

FTAs aim to significantly reduce or eliminate customs duties on a broad range of traded goods while promoting trade in services and investments through eased norms.

Key issues include Indian industry's demand for expanded UK market access for skilled professionals in IT and healthcare, alongside duty-free entry for specific goods. Conversely, the UK seeks reduced tariffs on scotch whiskey, electric vehicles, lamb meat, chocolates, and confectionery.

Negotiations also encompass a bilateral investment treaty spanning goods, services, investments, and intellectual property.

India-UK bilateral trade rose to USD 21.34 billion in 2023-24 from USD 20.36 billion the previous year. The Labour Party manifesto pledged to finalize the deal.

Goyal also engaged with Valdis Dombrovskis of the European Commission on bolstering India-EU economic ties and ongoing FTA negotiations. Discussions with New Zealand's Trade Minister Todd McClay explored avenues for enhancing bilateral trade and investment.