The UK government has announced its intention to forge a new strategic partnership with India, emphasizing the importance of a free trade agreement (FTA) and other collaborative agreements.

Following a recent meeting between Prime Ministers Keir Starmer and Narendra Modi at the G20 Summit in Brazil, India and the UK are set to resume FTA negotiations in early 2025.

The UK is particularly focused on reducing import duties on products like scotch whiskey, electric vehicles, lamb meat, and chocolates, while also seeking to expand its service opportunities in Indian markets, especially in telecommunications, legal, and financial sectors.

During the first half of fiscal year 2024, India's exports to the UK surged by 12.38%, totaling USD 7.32 billion, driven by key exports such as mineral fuels, machinery, and pharmaceuticals.

Bilateral trade between India and the UK has shown promising growth, reaching USD 21.34 billion in the fiscal year 2023-24, an increase from USD 20.36 billion the previous year.

Pending negotiations in the FTA include India's requests for greater access for skilled professionals in sectors such as IT and healthcare, alongside demands for lower customs duties on various goods.

In addition to the FTA, negotiations for a bilateral investment treaty (BIT) are underway, encompassing 26 chapters that address goods, services, investments, and intellectual property rights.

India's commerce ministry has welcomed the UK's commitment to relaunch trade talks and highlighted the necessity for a balanced and mutually beneficial agreement.

Looking ahead, the Indian government aims to achieve USD 1 trillion in exports by the fiscal year 2030, with expectations for exports to the UK to reach USD 30 billion by 2029-30.

These discussions, which initially began in January 2022, faced delays due to the UK's general election cycle.