UK & India to restart Trade Talks after 1-year Delay

India and the UK will restart free trade talks on February 24, 2025, almost a year after negotiations were paused ahead of elections.

Jonathan Reynolds, the UK’s business and trade secretary, is in Delhi to meet his Indian counterpart, Piyush Goyal, for the two-day discussions.

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.”

The countries have held more than a dozen rounds of talks since 2022, but no agreement has been reached.

Key issues include India’s high tariffs on Scotch whisky and demands for lower fees and relaxed visa rules for Indian students and professionals going to the UK.

This is the first round of talks since the Labour Party came to power. Reynolds said securing a deal was a “top priority” for his government.

He added: “Growth will be the guiding principle in our trade negotiations with India and I’m excited about the opportunities on offer in this vibrant market.”

For India, the talks have gained importance after the US announced tariffs on imported goods, including those from India.

The UK remains a high-priority trading partner for Prime Minister Narendra Modi’s government, which aims to grow exports by £790 billion ($1 trillion) by 2030.

Talks resumed after Sir Keir Starmer met Modi at the G20 summit in Brazil in November 2204.

The two countries currently share a trade relationship worth £41 billion ($52 billion), according to the UK government. A trade deal could unlock new opportunities.

London has identified sectors that could benefit, including advanced manufacturing, clean energy, and professional and trade services.

An agreement could open a valuable market for British cars, Scotch whisky, and financial services worth billions of dollars.

India is pushing for greater mobility for professionals and students, as well as faster visa processing times.

It may also seek concessions for its residents on business visas, who must pay national insurance but remain ineligible for social benefits.

During Reynolds’ visit, he and Goyal will also tour the BT office in Gurugram.

UK Investment Minister Poppy Gustafsson is also in India, attending events in Mumbai and Bengaluru.

After years of scepticism over free trade deals, India has signed agreements or is in talks with several countries and blocs.

In 2024, it signed a $100 billion (£790 million) free trade deal with the European Free Trade Association after nearly 16 years of negotiations.

Talks with the European Union are also set to resume this year.