Almost a year after negotiations were halted ahead of the results of the two nations ‘ general elections, India and the UK will resume free trade deals on Monday.
Jonathan Reynolds, the UK’s business and trade minister, is in Delhi, where he will satisfy his American rival Piyush Goyal to blow off the two-day conversations.
Ahead of the meeting, Reynolds said it was a “no-brainer” to seek a trade deal with India, which was forecast to become the world’s third-largest economy in a few years.
Since 2022, the nations have engaged in more than a hundred rounds of discussions, but an agreement has remained out of reach.
Scotch whisky is currently being priced at high prices in India, along with stiffer costs and visa requirements for American students and professionals entering the UK.
For the first time since the Labour Party took control of the UK, talks are taking place, and Reynolds says getting a bargain is his government’s top priority.
Progress will serve as the guiding process in our trade agreements with India, and I’m looking forward to the options that are available in this upbeat business, he said in a statement.
For Delhi, the trade talks have assumed renewed significance on the back of US President Donald Trump’s decision to impose reciprocal or tit-for-tat tariffs on imported goods from countries, including India.
Prime Minister Narendra Modi’s government’s ambitious goal of increasing exports by$ 1 trillion by FY30 also benefits from the UK as its top-priority trading partner.
The UK had announced in November last year – soon after Sir Keir Starmer met PM Modi at the G20 summit in Brazil – that talks would restart in the new year.
The two countries share a trade relationship worth £41bn ($ 52bn ) currently, according to a UK government statement, and a trade deal could unlock new opportunities for both countries.
London has identified sectors that was advantage, which include advanced production, clean energy and expert and business services. Achieving an agreement might also have the power to open a lucrative market for billion-dollar financial services, including Scotch whisky, and American automobiles.
India is pushing for faster immigration processing times while promoting greater freedom for its working professionals and students in the UK.
It may also ask for concessions for its temporary residents who work on business permits but are still required to pay federal plan but are still unable to receive social benefits.
Reynolds and Goyal may also travel to the BT office in Gurugram, northeastern India, during their visit.
Rose Gustafsson, the UK’s investment minister, will be attending events in Bengaluru and Mumbai, two of India’s biggest business hubs.
After years of scepticism over free trade deals, India has been signing agreements or is in talks with several countries or blocs. Last year, it signed a $100bn free trade agreement with the European Free Trade Association – a group of four European countries that are not members of the European Union – after almost 16 years of negotiations.
This time, it is also scheduled to begin discussions with the European Union.
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