India and UK trade ministers discuss advancing FTA negotiations

India-UK FTA: Commerce and Industry Minister Piyush Goyal met UK Secretary of State for Business and Tre Jonathan Reynolds in Italy to discuss vancing negotiations on proposed free tre agreement (FTA), according to an official statement on Wednesday.

bilateral meeting occurred on sidelines of G7 Tre Ministers' meeting in Reggio Calabria, Italy. India-UK FTA talks began in January 2022, but 14th round stalled as both nations entered ir general election cycles.

"Goyal congratulated Mr. Jonathan Reynolds on his appointment and discussed deepening bilateral economic relations. conversation included plans to take forward discussions on FTA between India and UK," commerce ministry said.

An FTA involves tring partners significantly reducing or eliminating customs duties on most goods tred between m. y also ease norms to promote tre in services and investments. re are pending issues in both goods and services sectors.

Indian industry is demanding greater access for its skilled professionals from sectors like IT and healthcare in UK market, as well as market access for several goods at zero customs duty. Conversely, UK is seeking a significant reduction in import duties on goods such as scotch whiskey, electric vehicles, lamb meat, chocolates, and certain confectionery items. Britain also wants more opportunities for UK services in India, including telecommunications, legal, and financial services.

two countries are also negotiating a bilateral investment treaty (BIT). agreement comprises 26 chapters, covering goods, services, investments, and intellectual property rights.

Bilateral tre between India and UK increased to $ 21.34 billion in 2023-24 from $ 20.36 billion in 2022-23. Labour Party's recent election manifesto committed to clinching deal.

Goyal also held meetings with or counterparts at G7 Tre Ministers' meeting. Discussions with Valdis Dombrovskis, Executive Vice President of European Commission, focused on promoting India-EU tre and economic collaborations, including ongoing FTA negotiations. ditionally, Goyal and New Zealand's Tre Minister Todd McClay explored opportunities to enhance bilateral tre and investment ties for mutual growth.