Despite growing anticipation, the India-UK Free Trade Agreement (FTA) remains without a fixed deadline, as negotiations continue with a focus on resolving all outstanding issues comprehensively rather than rushing to a quick conclusion. Official sources emphasize that while the goal is to finalize the deal at the earliest, the priority is a robust, balanced agreement that benefits both nations.
Key sticking points include visa arrangements for skilled Indian professionals and the totalisation agreement on social security, which remain unresolved. The UK, meanwhile, is keen on securing greater market access, particularly in sectors like alcoholic beverages, automobiles, and services. Alongside the FTA, discussions on a bilateral investment treaty are also ongoing.
Commerce and Industry Minister Piyush Goyal recently concluded a two-day visit to the UK, where he met Jonathan Reynolds, UK Secretary of State for Business and Trade, to advance the negotiations. Goyal highlighted the commitment on both sides to deepen economic ties and stressed that while speed is important, haste must be avoided to ensure a durable agreement.
The India-UK FTA negotiations, launched in January 2022, have progressed through multiple rounds, with around 90% of the agreement reportedly settled. However, sensitive issues such as tariffs on whisky, electric vehicles, and pharmaceutical products, as well as mobility and visa access for Indian professionals, continue to require delicate handling. The deal promises significant benefits, including steep tariff cuts for UK exports like Scotch whisky and luxury vehicles, and enhanced access for Indian professionals to the UK market under specific visa conditions. Both countries see this pact as a strategic opportunity to boost bilateral trade, which stood at $21.34 billion in FY24, and to strengthen investment flows.
Goyal’s ongoing European tour also includes talks on other trade agreements, such as the India-EFTA Trade and Economic Partnership Agreement and the India-EU FTA, reflecting India’s broader strategy to fast-track trade deals amid global trade uncertainties.
While the India-UK FTA is edging closer to completion, the absence of a firm deadline underscores the complexity of the negotiations and the determination to achieve a deal that is balanced, forward-looking, and sustainable for both economies.