Hopes high as India, UK restart FTA talks

No deadline set; quality of deal seen more important than speed

- Dhirendra Kumar

India and the UK returned to free trade negotiations on Monday after a year's gap, offering a glimmer of optimism in a world witnessing a surge in protectionism. According to commerce minister Piyush Goyal, the proposed free-trade agreement (FTA) may raise India-UK trade by as much as threefold in the next 10 years, at a time when rising tariff walls threaten to put a dampener on free movement of goods and services.

Alongside the FTA, discussions are also progressing on a Bilateral Investment Treaty (BIT) and a Double Taxation Avoidance Agreement, the two sides confirmed, adding all three aim to provide a stable regulatory and investment climate.

"This will be a path-breaking free trade agreement," Goyal said at a press conference with his British counterpart Jonathan Reynolds, adding it could boost merchandise trade with Britain two to three times in a decade. India's trade with the UK grew from $17.5 billion in FY22 to $20.36 billion in FY23 and $21.34 billion in FY24. The UK is India's 11th largest trade partner, with the two sharing long-standing cultural and social links.