Explained: How India and UK Achieve 'Landmark' FTA Deal

The idea of a Free Trade Agreement between India and the United Kingdom was rooted in a shared interest to strengthen economic ties and boost bilateral trade after Brexit.

- TDG NETWORK

The journey formally began with the launch of the Enhanced Trade Partnership (ETP) on May 4, 2021, during a virtual summit between Indian Prime Minister Narendra Modi and then UK Prime Minister Boris Johnson. This partnership served as a precursor to a comprehensive FTA, laying down a roadmap to deepen trade cooperation.

Following this, the formal FTA negotiations were launched on January 13, 2022, in New Delhi by India's Commerce and Industry Minister Piyush Goyal and then UK Secretary of State for International Trade Anne-Marie Trevelyan.

Over the next three years, the two countries engaged in 14 rounds of negotiations, addressing various aspects such as goods, services, investment, intellectual property rights, and sustainable development.

Progress was steady but complex, with key sticking points including tariff reductions, labor mobility, and market access. In March 2024, talks were paused due to India's general elections, with both sides agreeing to resume discussions afterward.

Negotiations resumed in February 2025, after elections were completed in both nations. The talks were now led by Goyal and the new UK Secretary of State for Business and Trade, Jonathan Reynolds.

In late April and early May 2025, Goyal visited London twice for high-level meetings, culminating in the conclusion of negotiations on May 6, 2025. Alongside the FTA, both countries also finalized a Double Contribution Convention, aimed at addressing tax-related concerns of cross-border businesses.

The FTA marks a significant milestone in India-UK relations, reflecting their shared commitment to open markets, job creation, and deeper strategic engagement.

Early Efforts and Strategic Interest The idea of a trade agreement between India and the UK dates back to the early 2000s, but formal interest gained momentum after Brexit, when the UK was seeking new global trading relationships to replace ties previously managed through the European Union.