New Delhi [India], February 25 : The UK India Business Council (UKIBC) has welcomed the resumption of the UK-India Free Trade Agreement (FTA) negotiations following the visit of the UK's Business and Trade Secretary, Jonathan Reynolds, to India.
The visit includes two days of discussions with India's Commerce and Industry Minister, Piyush Goyal, and his team, aimed at reviving the stalled trade deal and deepening economic ties between the two nations.
In an official statement, Secretary of State Reynolds underscored the significance of securing a trade deal with India, saying, "Securing a trade deal with what is soon-to-be the third biggest economy in the world is a no-brainer, and a top priority for me and this Government. That is why I'm in New Delhi with our top negotiating team to show our commitment to getting these talks back on track."
The UK and India have witnessed a significant rise in bilateral trade over the years. Total trade in goods and services grew by 10 per cent to reach £42 billion by the end of Q2 2024, almost doubling from £24.1 billion in 2019, before the pandemic.
This upward trajectory highlights the increasing economic cooperation between the two nations, making the finalization of the FTA even more crucial.
Since 2022, both countries have engaged in 13 rounds of FTA negotiations, with discussions temporarily paused due to the UK's general elections in May 2024.
The trade agreement is expected to cover various critical areas, including tariff reductions, market access, intellectual property rights, digital trade, and services sectors.
Once finalized, the UK-India FTA is expected to boost investments, facilitate smoother trade flows, and provide businesses on both sides with enhanced market opportunities.
Richard Heald, OBE, Chair of UKIBC, emphasized the importance of the deal, stating,"Secretary of State Jonathan Reynolds' visit reaffirms the UK government's commitment to step-up to a more ambitious and future-focused trade & investment relationship with India."
He added, "Starting with last years' announcement of the Technology Security Initiative between India and the UK, the partnership has developed further with renewed focus on co-operation, collaboration and integration across AI, security, climate change, development, research & innovation and more."
The UKIBC believes that a successful UK-India FTA will play a key role in India's Viksit Bharat@2047 vision--a roadmap for transforming India into a developed economy by its 100th year of independence.
With the UK and India reaffirming their commitment to closing a comprehensive trade deal, the resumption of negotiations marks a significant step forward. Both sides recognize the potential of the FTA in unlocking new trade and investment opportunities, further strengthening their economic and strategic partnership.