Piyush Goyal meets UK counterpart, push FTA talks
Financial Express | 28 April 2025
Piyush Goyal meets UK counterpart, push FTA talks
Commerce and Industry Minister Piyush Goyal met his UK counterpart Jonathan Reynolds on Monday to advance the negotiations on the Free Trade Agreement (FTA) between the two countries.
Goyal, who arrived in London on the first part of his tour to Europe, will spend two days in the UK for discussions aimed at strengthening bilateral trade and investment relations. In a post on ‘X,’ then minister described his meeting with secretary of state for business and trade Reynolds as “productive.”
Both India and UK have been engaged in discussions on the FTA since January 2022 and according to officials negotiations on the agreement are at a “closing end”.
Both sides are waiting for talks on the Bilateral Investment Treaty (BIT) to also get over before both the pacts are signed, as was envisaged when negotiations began.
Since the launch of India-UK FTA talks were launched 14 rounds of formal negotiations have taken place. The talks were suspended in May of 2024 as elections in both countries intervened. After elections brought the Labour Party to power, Secretary of State for the Department for Business and Trade of the United Kingdom Jonathan Reynolds visited New Delhi in March to resume discussions.
Apart from FTA and BIT, a social security agreement formally called Double Contribution Convention Agreement is also being negotiated by both sides.
While the UK is asking lower duties on automobiles, electric vehicles, whiskey and national treatment for its services sector in the FTA. India is seeking greater access to its labour incentive manufacturing sector to the UK market apart from greater flexibility in grant of visas to its service professionals. In the agriculture sector India has conveyed its sensitivities to the UK. According to officials, many sensitive areas in the negotiations have already been resolved.
The UK is the fourth biggest export market for India with shipments growing 12.0% on year to $ 14.5 billion in 2024-25.
Goyal’s visit to Europe will also take him to the headquarters of the European Union (EU) Brussels and Norway. India and the EU are aiming to complete negotiations on their FTA by the end of this year. India and EU started negotiations on FTA in June 2022 and so far held 10 rounds of talks. The 11th round of talks with the EU will happen in New Delhi from May 12 to May 16.
Norway is part of the European Free Trade Association (EFTA). With EFTA, India had signed a Trade and Economic Partnership Agreement (TEPA) in March last year. It is expected to become operational by June as the national parliaments of all four EFTA members – Iceland, Liechtenstein, Norway, and Switzerland – have ratified it. Now the pact is awaiting referendum in Swiss cantons (equivalent to states in India).
