India and UK to Resume Free Trade Talks in February

New Delhi, Feb 4 (KNN) India and the UK are set to resume negotiations for their proposed Free Trade Agreement (FTA) on February 24, according to an official source.

This marks a significant step forward after a hiatus that came when both countries entered their respective general election cycles. The UK trade minister is expected to visit New Delhi soon to restart the talks.

The discussions, which began in January 2022, have so far seen 14 rounds of negotiations. The FTA aims to bolster bilateral trade and investment by eliminating or significantly reducing customs duties on goods and easing trade regulations for services and investments. Both nations are eager to unlock new opportunities.

India has been pushing for improved access for its skilled professionals in sectors like IT and healthcare in the UK. Additionally, Indian businesses are seeking market access for various goods with zero customs duty.

On the flip side, the UK is keen to see reductions in import duties on key products such as scotch whiskey, electric vehicles, lamb meat, chocolates, and confectionery.

Furthermore, the UK is also looking for expanded opportunities for its services in India, particularly in sectors like telecommunications, legal, and financial services, including banking and insurance.

A potential boost to these talks comes from India's Finance Minister Nirmala Sitharaman, who, in her 2025-26 budget proposal, announced plans to increase the foreign direct investment (FDI) cap in India’s insurance sector from 74 per cent to 100 per cent.

This move is part of a broader set of financial reforms aimed at attracting more international capital and could play a pivotal role in advancing negotiations.

The FTA talks also involve discussions around a Bilateral Investment Treaty (BIT) and cover 26 areas, including goods, services, intellectual property rights, and investments.

Bilateral trade between India and the UK has grown to USD 21.34 billion in 2023-24, up from USD 20.36 billion the previous year, highlighting the potential for further economic cooperation.

(KNN Bureau)