India and the UK have reached an agreement to resume negotiations on a proposed trade deal, with Indian Trade Minister Piyush Goyal confirming on Monday that both nations will speed up the process.
Goyal made the announcement during a joint press conference with UK Business and Trade Secretary Jonathan Reynolds, who is in India to resume the talks that were paused last year due to general elections in both India and the UK.
The resumption of these bilateral trade negotiations is seen as crucial, especially amid increasing global uncertainties, including the potential for reciprocal import tariffs from former U.S. President Donald Trump.
Both countries plan to expedite negotiations for a trade deal that would include a bilateral free trade agreement and an investment treaty, according to Goyal.
This marks the first round of India-UK trade talks since the Labour Party assumed office in the UK last July. Reynolds emphasized that securing a trade agreement is a “top priority” for the UK government.
UK Investment Minister Poppy Gustafsson is also set to meet with investors in Mumbai, the financial capital, and Bengaluru, the IT hub, to encourage Indian businesses to invest.
As of the 12 months ending September 2024, bilateral trade in goods and services between India and the UK, which are currently the world’s fifth and sixth-largest economies, reached £41 billion ($52 billion), based on UK government estimates.
