India-UK restarted trade talk

The two-day talks began Monday in Delhi when UK Business and Trade Secretary Jonathan Reynolds visited Indian counterpart Piyush Goyal.

The two countries have held over a dozen rounds of talks since 2022, but they still haven’t reached an agreement. They put trade negotiations on hold ahead of both countries’ elections in March of last year.

Following years of postponement, India finally negotiated trade deals with a number of nations in 2022, including the United Arab Emirates, Australia, and the European Free Trade Association, which is composed of Switzerland, Norway, Iceland, and Liechtenstein.

Key sticking points include India’s high tariffs on Scottish whisky and the need to ease fees and visa rules for Indian students and professionals traveling to the UK.

India: To become third-lagest economy

“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,” Jonathan said in a statement ahead of the meeting.

India is expected to become the world’s third-largest economy in the coming years.

After the meeting, the ministers held a joint press conference, but neither side provided a timeline for when the talks might conclude. Previous deadlines set by former ministers Boris Johnson and Liz Truss had passed without reaching an agreement.

For Delhi, these trade negotiations have gained even more importance after US President Donald Trump decided to impose reciprocal tariffs on goods from several countries, including India.

The UK is also a key trading partner for Prime Minister Narendra Modi’s government, which aims to grow exports by $1 trillion by FY30.

Benefits for both countries

According to a UK government statement, the two nations presently have a commercial connection valued at £41 billion ($52 billion), and a trade agreement might open up new prospects for both.

London has determined that innovative manufacturing, sustainable energy, and professional and trade services are among the industries that stand to gain. Additionally, a deal may open up a billion-dollar market for financial services, Scotch whisky, and British automobiles.