After years of negotiations and political transitions, the UK and India have officially resumed talks for a Free Trade Agreement (FTA), following a meeting between Prime Ministers Sir Keir Starmer and Narendra Modi at the 2024 G20 Summit. With bilateral trade already hitting £40.9 billion in the year to Q3 2024, this FTA aims to supercharge growth and solidify strategic ties under the ‘2030 Roadmap for India-UK Future Relations’.
As discussions move forward this week, three key expectations have emerged:
Tariff Reductions: One major sticking point has been India's high tariffs on iconic UK exports like Scotch whisky and premium cars. A successful FTA is expected to significantly cut these duties, making British goods more competitive in India’s expanding middle-class market.
Services and Mobility Access: The UK aims to secure easier visa pathways for Indian professionals, students, and business travellers. In return, India looks for enhanced market access for its tech and financial services sectors within the UK.
Sustainable Trade Provisions: With global climate goals in mind, both nations are expected to address issues like the UK's proposed Carbon Border Adjustment Mechanism and collaborate on green technology and carbon-neutral supply chains.
If these ambitions materialise, the FTA could reshape one of the world’s most dynamic bilateral trade relationships.
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