New Delhi: India and the United Kingdom are set to resume talks for their proposed free trade agreement (FTA) early next year, aiming to bridge differences and finalize the deal swiftly, an official statement confirmed on Wednesday.

Following a meeting between British Prime Minister Keir Starmer and Indian Prime Minister Narendra Modi at the G20 Summit in Brazil, Starmer announced that trade negotiations will restart in 2024. The two leaders met on the sidelines of the summit in Rio de Janeiro on Monday, after which Downing Street emphasized the UK's goal to forge a new strategic partnership with India, which would include a comprehensive trade agreement.

Negotiations for the India-UK FTA began in January 2022 but faced a stall after the 14th round of talks as both nations entered their general election periods.

"We welcome the UK's decision to relaunch trade talks with India in the new year," the Indian commerce ministry said, adding that it was committed to working closely with the UK's negotiating team to resolve outstanding issues. The talks will aim to build on previous progress and address the remaining gaps to complete the deal as quickly as possible.

Both countries are working on resolving issues in the goods and services sectors. India is seeking better access for skilled professionals from sectors like IT and healthcare in the UK, as well as zero-duty access for several goods. In contrast, the UK is pushing for a reduction in import duties on products like scotch whiskey, electric vehicles, lamb meat, chocolates, and other confectionery items. Additionally, the UK seeks greater opportunities for its services in India, including in telecommunications, legal, and financial sectors.

Negotiations also include a bilateral investment treaty (BIT), with 26 chapters covering goods, services, investments, and intellectual property rights.

In 2023-24, bilateral trade between India and the UK grew to USD 21.34 billion, up from USD 20.36 billion the previous year. India's exports to the UK saw a 12.38% rise in the first half of 2024, reaching USD 7.32 billion. The major exports to the UK include mineral fuels, machinery, precious stones, pharmaceuticals, and chemicals, which account for nearly 69% of total exports.

"The UK remains a key partner in achieving India's ambitious USD 1 trillion export target by FY30, with exports expected to reach USD 30 billion by 2029-30," the ministry added.

Britain to Re-launch Free Trade Talks with India in 2025, Seeking New Strategic Partnership