India–United Kingdom Free Trade Agreement

Proposed free trade agreement between India and the United Kingdom

India–United Kingdom Free Trade Agreement

India

United Kingdom

Type| Free trade agreement and Economic Intregration Agreement
Context| Trade agreement between India and the United Kingdom
Drafted| 6 May 2025
Sealed| 6 May 2025
Negotiators|

* Piyush Goyal
* Anne-Marie Trevelyan
until 6 September 2022
Kemi Badenoch
from 6 September 2022 until 5 July 2024
Jonathan Reynolds
from 5 July 2024

Parties|

* India
* United Kingdom

Language| English

The India–United Kingdom free trade agreement is a free trade agreement which began negotiations in January 2022.[1] When completed it became the second comprehensive free trade agreement that India had concluded with a European country; it became the fourth trade agreement signed by the United Kingdom since leaving the European Union negotiated completely anew.[2]

India and the United Kingdom concluded negotiations for an agreement in principle on 6 May 2025.[3]

## Negotiations

[edit]

India–UK FTA Round of Negotiations  Round | Dates | Location | Ref.

|
|
|

1 | 17–28 January 2022 | Virtual meeting | [4]
2 | 7–17 March 2022 | London | [5]
3 | 25 April–6 May 2022 | New Delhi | [6]
4 | 13–24 June 2022 | London | [7]
5 | 18–29 July 2022 | New Delhi | [8]
6 | 12–16 December 2022 | New Delhi | [9]
7 | 6–10 February 2023 | London | [10]
8 | 20–31 March 2023 | New Delhi | [11]
9 | 24–28 April 2023 | London | [11]
10 | 5–9 June 2023 | New Delhi | [12]
11 | 5–14 July 2023 | London | [13]
12 | 8–31 August 2023 | New Delhi | [14]
13 | 18 September–15 December 2023 | London,
New Delhi | [15]
14 | 10 January–15 March 2024 | London,
New Delhi | [16][17]
15 | 24 February 2025–6 May 2025 | New Delhi | [18][3]

In May 2021, British Prime Minister Boris Johnson and Indian Prime Minister Narendra Modi agreed deeper trade co-operation between the two countries.[19] This “Enhanced Trade Partnership” removed a number of trade barriers and set out the two countries’ intention to work towards a free trade agreement.[20]

India and the UK launched negotiations in January 2022.[21] Johnson declared that the agreement should be completed by Diwali 2022.[22][23] Despite this, in October 2022, the Secretary of State for International Trade, Kemi Badenoch, said that the Government was no longer working to this deadline.[24] She stated that the Government wanted “to focus on the quality of the deal rather than the speed of the deal”.[25]

By December 2023, the UK and India had reached the 13th round of negotiations, deciding to fast track the agreement in order to complete prior to the elections in both countries the following year.[2] Negotiations between both countries are locked in several issues, one of which is the UK's concerns about agreeing to visas for professionals demanded by India.[26] The thirteenth round of negotiations concluded on 18 December 2023.[15]

The fourteenth round of negotiations began on 10 January 2024.[16] India had been pushing to include social security payments for Indian workers in the UK, Badenoch is reportedly “keen to avoid” this.[27] In March, UK Negotiators flew to India in a “last-gasp attempt to clinch an FTA before the Indian election campaign pauses talks”, according to a UK government official, adding that India believes “they will get more out of Labour on visas and social security”.[28] Shadow Secretary of State for Business and Trade Jonathan Reynolds and Shadow Foreign Secretary David Lammy visited India the month prior to talk with Indian officials.[29] The UK is asking for access in India's government procurement as well as signing a bilateral investment treaty before concluding the FTA.[30] Some British trade officials are increasingly pessimistic about the India deal and see a free trade agreement with the Gulf Cooperation Council as a more realistic deal which can be struck prior to the next election.[28] The fourteenth round of negotiations remain open without a breakthrough on major outstanding issues between the two countries, India became primarily focused on their upcoming general election.[31] Badenoch stated that she would not use the Indian elections as a deadline, just prior to India signing a free trade agreement with the European Free Trade Association, whose members include Iceland, Liechtenstein, Norway, and Switzerland.[32] On 12 March, Modi and British Prime Minister Rishi Sunak agreed to work for an early conclusion of the free trade agreement, during a phone call.[33][34]

On 15 March, it was announced that negotiations will be "put on ice" until spring after India's election concludes.[17][35] At the beginning of April, the Indian Ministry of Commerce and Industry placed the completion of India–UK FTA as their priority for 100-day agenda after a new government takes charge.[36] Despite the fourteenth round being declared the prior month, the round remained open by request of India in April 2024; India demanded an exemption from the UK’s planned carbon tax, as well as concessions on visas for Indian workers and, a social security agreement.[37] On 28 May, a high-ranking British delegation had abruptly cancelled its scheduled visit to New Delhi, due to the snap election announcement in the UK a few days prior.[38]

By Spring 2024, the majority of the 26 chapters in the FTA, which include goods, services, investments and intellectual property rights were completed; the remainder of the unresolved issues were rules of origin, duty concessions on electric vehicles, Scotch whisky, social security agreement, carbon border tax, and liberalisation of financial services, in addition to a separate bilateral investment treaty.[39]

Following Modi's re-election on 4 June, which was received positively by UK-based strategic experts and poll watchers, Modi maintained his party's stated objective to conclude the UK-India FTA negotiations within those first 100 days.[40] India had to wait until 4 July for the conclusion of the British general election, in order to resume negotiations for the FTA.[41] On 14 June, Modi and Sunak reaffirmed their commitment to concluding the free trade agreement at a bilateral meeting during the 50th G7 summit.[42][43] Upon the election of Sir Keir Starmer as British Prime Minister, the two leaders agreed to work towards early conclusion of a mutually beneficial FTA during a phone call.[44] During a visit to New Delhi in late July, Foreign Secretary David Lammy and Modi committed to an early conclusion for the FTA under the Starmer government.[45]

At the 2024 G20 Rio de Janeiro summit, Starmer and Modi agreed to relaunch negotiations for an FTA in early 2025, Starmer also proposed upgrading bilateral relations by seeking a new Strategic Partnership covering energy and security.[46] FTA talks were relaunched on 14 January 2025.[47][48] On 9 April 2025, Chancellor Rachel Reeves and Finance Minister Nirmala Sitharaman announced that 90% of the trade agreement had been completed, including mobility visas for Indian workers which had been one of the most contentious negotiation issues; the outstanding issues related to whisky, cars, and pharmaceuticals.[49] It was reported on 27 April 2025, that India had watered down its original requests in regards to visas.[50] On 29 April 2025, Piyush Goyal declared that “25 of 26 matters have been agreed.”[51] On 6 May 2025, Prime Minister Modi announced that an agreement had been reached between India and the United Kingdom.[52][3]

## Comments

[edit]

Diageo India CEO, Hina Nagarajan stated that the FTA would be one of the greatest milestones for market access in the alcoholic beverage industry in decades if the 150% duty levied on imported Scotch whisky is reduced.[53]

## See also

[edit]

* India portal
* United Kingdom portal
* Politics portal

* Free trade agreements of India
* Free trade agreements of the United Kingdom
* India–United Kingdom relations

## References

[edit]

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3. ^ a b c Parker, George; Sheppard, David; Foster, Peter; Reed, John (6 May 2025). "UK and India have struck trade deal, Modi says". Financial Times. London; New Delhi. Archived from the original on 6 May 2025. Retrieved 6 May 2025.
4. ^ Trevelyan, Anne-Marie (28 January 2022). "Joint outcome statement: India-UK round one FTA negotiations". GOV.UK. Archived from the original on 28 January 2022. Retrieved 23 April 2024.
5. ^ Lord Grimstone of Boscobel (24 March 2022). "India Trade Negotiations Update". UK Parliament. Archived from the original on 23 April 2024. Retrieved 23 April 2024.
6. ^ Trevelyan, Anne-Marie (12 May 2022). "India Trade Negotiations: Update". UK Parliament. Archived from the original on 23 April 2024. Retrieved 23 April 2024.
7. ^ Trevelyan, Anne-Marie (28 June 2022). "India Trade Negotiations: Update". UK Parliament. Archived from the original on 27 September 2022. Retrieved 23 April 2024.
8. ^ Trevelyan, Anne-Marie (10 August 2022). "Letter to the House of Lords dated 10 August 2022". UK Parliament. Retrieved 23 April 2024.
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10. ^ Badenoch, Kemi (7 March 2023). "India Trade Negotiations: Update". UK Parliament. Archived from the original on 23 April 2024. Retrieved 23 April 2024.
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13. ^ Huddleston, Nigel (20 June 2023). "Written Statements". UK Parliament. Archived from the original on 23 April 2024. Retrieved 23 April 2024.
14. ^ "Joint outcome statement: UK-India round twelve of FTA negotiations". GOV.UK. 1 September 2023. Archived from the original on 1 September 2023. Retrieved 23 April 2024.
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16. ^ a b Singh, Namita (22 August 2023). "Indian delegation in UK for final push on free trade agreement". The Independent. Archived from the original on 21 February 2024. Retrieved 21 February 2024.
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18. ^ Courea, Eleni (24 February 2025). "UK ministers head to India in search of trade deal they hope will boost economy". The Guardian. New Delhi. Archived from the original on 24 February 2025. Retrieved 24 February 2025.
19. ^ Johnson, Boris (4 May 2021). "Prime Minister announces £1 billion of new UK-India trade". GOV.UK. Archived from the original on 4 May 2021. Retrieved 15 December 2023.
20. ^ Mayes, Joe (4 May 2021). "Johnson and Modi Pledge 'Quantum Leap' in U.K.-India Ties". Bloomberg. Archived from the original on 4 May 2021. Retrieved 15 December 2023.
21. ^ Trevelyan, Anne-Marie (13 January 2022). "UK-India Free Trade Agreement Negotiations". UK Parliament. Archived from the original on 12 January 2023. Retrieved 15 December 2023.
22. ^ Johnson, Boris (22 April 2022). "PM statement in India: 22 April 2022". GOV.UK. Archived from the original on 22 April 2022. Retrieved 15 December 2023.
23. ^ MacAskill, Andrew; Smout, Alistair (22 October 2022). "Britain still wants free trade deal with India by Diwali". Reuters. Archived from the original on 12 October 2022. Retrieved 15 December 2023.
24. ^ Fraser, Douglas (13 October 2022). "Scotching the trade deal with India?". BBC News. Archived from the original on 13 October 2022. Retrieved 15 December 2023.
25. ^ Mukhopadhyay, Sounak (14 October 2022). "India-UK free trade agreement: Diwali deadline no longer valid, negotiations still on". Mint. Archived from the original on 14 October 2022. Retrieved 15 December 2023.
26. ^ Sharma, Abhimanyu (15 December 2023). "UK reluctant to agree to India's demands for visas under proposed FTA: Sources". CNBC TV18. Archived from the original on 15 December 2023. Retrieved 15 December 2023.
27. ^ Parker, George; Reed, John (10 February 2024). "UK-India trade deal talks hit impasse over social security payments". Financial Times. Archived from the original on 18 February 2024. Retrieved 5 March 2024.
28. ^ a b Courea, Eleni (5 March 2024). "UK negotiators fly to India in last-ditch effort to seal free-trade deal". The Guardian. Archived from the original on 5 March 2024. Retrieved 5 March 2024.
29. ^ Kumar, Shajil (5 February 2024). "Labour party aims to boost trade ties with India". Eastern Eye. Archived from the original on 5 March 2024. Retrieved 5 March 2024.
30. ^ Suneja, Kirtika (5 March 2024). "As India gets poll ready, FTA talks with UK in last leg". The Economic Times. Archived from the original on 5 March 2024. Retrieved 5 March 2024.
31. ^ Srivastava, Shruti; White, Lucy (8 March 2024). "India-UK Trade Talks Set to End With Key Issues Unresolved". Bloomberg. Archived from the original on 8 March 2024. Retrieved 8 March 2024.
32. ^ Hoskins, Peter (11 March 2024). "India signs $100bn free trade deal with four European nations". BBC News. Archived from the original on 11 March 2024. Retrieved 11 March 2024.
33. ^ Modi, Narendra [@narendramodi] (12 March 2024). "Had a good conversation with PM @RishiSunak. We reaffirmed our commitment to further strengthen the bilateral Comprehensive Strategic Partnership and work for early conclusion of a mutually beneficial Free Trade Agreement" (Tweet). Archived from the original on 12 March 2024. Retrieved 12 March 2024 – via Twitter.
34. ^ Seli, Yeshi (12 March 2024). "PM Modi speaks to British PM Sunak, says will work for early conclusion of FTA". The New Indian Express. Archived from the original on 12 March 2024. Retrieved 12 March 2024.
35. ^ Courea, Eleni (15 March 2024). "UK and India put free trade deal talks on ice until later this year". The Guardian. Archived from the original on 15 March 2024. Retrieved 15 March 2024.
36. ^ Kumar, Dhirendra (10 April 2024). "India-UK FTA tops commerce ministry's 100-day agenda". Mint. Archived from the original on 10 April 2024. Retrieved 11 April 2024.
37. ^ Courea, Eleni (19 April 2024). "India seeks UK carbon tax exemption in free trade deal talks". The Guardian. Archived from the original on 19 April 2024. Retrieved 19 April 2024.
38. ^ Singla, Anmol (28 May 2024). "British delegation calls off New Delhi visit, putting India-UK FTA talks in limbo. What is going on?". Firstpost. Archived from the original on 28 May 2024. Retrieved 31 May 2024.
39. ^ "Election delays over FTA: Finalising the Indo-UK deal will have to await the incoming governments in both nations". The Financial Express. 29 May 2024. Archived from the original on 30 May 2024. Retrieved 30 May 2024.
40. ^ "India's thriving flourishing democratic process wins big in UK". The Week. 4 June 2024. Archived from the original on 4 June 2024. Retrieved 5 June 2024.
41. ^ Craw, Victoria (5 June 2024). "UK may work with India on visas and trade after elections". The i Paper. Archived from the original on 5 June 2024. Retrieved 5 June 2024.
42. ^ "G7 Summit: PM Modi and British PM Rishi Sunak meet in Italy". The Times of India. 14 June 2024. Archived from the original on 14 June 2024. Retrieved 14 June 2024.
43. ^ "PM Modi meets British counterpart Sunak; reaffirms commitment to bilateral strategic ties". The Economic Times. 14 June 2024. Archived from the original on 14 June 2024. Retrieved 14 June 2024.
44. ^ "Starmer, Modi agree to work towards mutually beneficial India-UK FTA". Business Line. 5 July 2024. Archived from the original on 6 July 2024. Retrieved 7 July 2024.
45. ^ Sharma, Kiran (26 July 2024). "India and U.K. eye early FTA under new Starmer government". Nikkei Asia. Archived from the original on 25 July 2024. Retrieved 26 July 2024.
46. ^ Gregory, Andy (19 November 2024). "UK to relaunch 'vital' trade talks with India in early 2025". The Independent. Archived from the original on 19 November 2024. Retrieved 19 November 2024.
47. ^ The Economic Times (14 January 2025). "Free Trade Agreement talks with India have been relaunched: UK". The Economic Times. Archived from the original on 14 January 2025. Retrieved 14 January 2025.
48. ^ Press Trust of India (14 January 2025). "UK, India relaunch FTA talks to strengthen ties, focus on green tech trade". Business Standard. London. Archived from the original on 14 January 2025. Retrieved 14 January 2025.
49. ^ Courea, Eleni (9 April 2025). "'We are nearly there': UK and India agree 90% of free trade agreement". The Guardian. Archived from the original on 9 April 2025. Retrieved 9 April 2025.
50. ^ "India blinks on visas to pave way for UK trade deal". Politico. 28 April 2025. Retrieved 28 April 2025.
51. ^ "UK and India on cusp of striking trade deal". POLITICO. 29 April 2025. Retrieved 30 April 2025.
52. ^ Srivastava, Shruti (6 May 2025). "UK, India Agree Trade Deal Amid Fallout of Trump Tariff Wars". Bloomberg. Archived from the original on 6 May 2025. Retrieved 6 May 2025.
53. ^ Sharma, Abhimanyu (29 May 2024). "Diageo India: India-UK FTA will be a milestone for market access if 150% duty comes down". CNBC TV18. Archived from the original on 29 May 2024. Retrieved 30 May 2024.

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