India and the United Kingdom have resumed negotiations on a Free Trade Agreement (FTA) after a pause of nearly eight months, primarily due to elections in both countries.

The announcement was made by Union Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds in New Delhi. The negotiations, which began in January 2022, aim to boost bilateral trade and investments by reducing tariffs and easing regulatory barriers.

The UK is India's sixth-largest investor, with significant foreign direct investment inflows, and both nations are keen to strengthen their economic ties.

The resumption of talks follows a meeting between Prime Minister Narendra Modi and his UK counterpart Keir Starmer on the sidelines of the G20 Summit in Rio de Janeiro in November 2024, where both leaders emphasised the need to expedite negotiations.

The agreement is expected to enhance the estimated GBP 42 billion annual bilateral trade and potentially double or triple it over the next decade.

Key issues to be addressed include business visas, duty cuts, and fair treatment of spirits, particularly Scotch whisky, which is a significant concern for the UK.

Both sides have committed to achieving a balanced, mutually beneficial, and forward-looking deal that leverages the complementary strengths of their economies.

While no specific timeline has been set for concluding the negotiations, the ministers emphasised the importance of speed without haste to ensure a robust agreement beneficial to both parties.

The negotiations also include discussions on a bilateral investment treaty (BIT) and a social-security agreement, marking a comprehensive approach to enhancing economic cooperation between India and the UK.

ANI