According to an official source, India and the United Kingdom will continue negotiations on the proposed free trade agreement (FTA) beginning February 24. The UK trade minister is set to visit New Delhi soon to speed up discussions. The talks began in January 2022 but stalled as both countries entered their general election cycles.
The pact seeks to boost bilateral trade and investment by removing or lowering duties on most commodities. It would also simplify restrictions to encourage trade in services and investments. Indian industries are advocating for increased access for qualified professionals, particularly in IT and healthcare, as well as duty-free market access for a variety of goods.
In exchange, the UK wants cheaper import levies on Scotch whisky, electric vehicles, lamb meat, chocolates, and confectionery. Britain also pursues new chances in telecommunications, law, and financial services, such as banking and insurance.
The talks may gain traction following FM Nirmala Sitharaman’s recent proposal to increase FDI quota in the insurance sector from 74% to 100%. India and the UK are also negotiating a bilateral investment treaty (BIT).
Bilateral trade increased to $21.34 billion in 2023-24, from $20.36 billion in 2022-23.
