India, U.K. relaunch trade negotiations

India and the United Kingdom on Monday (February 24, 2025) restarted negotiation for a trade pact. The announcement was made jointly by Minister of Commerce and Industry Piyush Goyal and the Trade Secretary of the U.K. Jonathan Reynolds who is visiting here. Addressing a joint press conference, the visiting Trade Secretary said the trade pact is of “top priority” for the Government of Prime Minister Keir Starmer.

“Both sides have agreed to resume negotiations towards a balanced, mutually beneficial and a forward looking deal that delivers mutual growth and builds on the strengths of the two complementary economies,” a joint statement declared at the end of bilateral consultations held on Monday. Monday’s declaration is significant as it came days after the US President Donald Trump criticised India for having high trade tariff.

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“The two leaders directed the negotiators to work together to resolve the outstanding issues in the agreement to ensure a fair and equitable trade deal for shared success,” the joint statement further stated. Commerce Minister Goyal in his opening sentence said the delay in the negotiations was caused by change of governments and elections pointing out that the two sides have “great trust” and informed that the two sides have held fourteen rounds of discussion about a trade pact.

“I am thrilled to be here to relaunch negotiations towards the UK-India trade deal and investment treaty. In what is increasingly a volatile and multipolar world, India is a vital partner for the UK. We are lucky to already have such a strong relation with India,” said Mr Reynolds describing the Indian diaspora in the UK as the “living bridge” between the two sides.

“Our countries are deeply intertwined through our shared principles, as two democracies committed to rules-based international order and through culture,” said Mr Reynolds calling for “free and open trade” and jobs and growth in both UK and India. The visiting dignitary said the current Government of the UK is focused on ensuring growth for the national economy of the UK and for “creation of wealth and jobs and opportunities”.

“Through these negotiations, I am securing a mutually beneficial deal,” said Mr Reynolds. The two sides however stopped short of declaring that the trade pact would be ready by the end of this year with Mr Goyal declaring, “We will have speed but not haste” in completing the negotiations. In response, Mr Reynolds said, “For us it is the quality of the agreement rather than the speed in delivering it.” He also pointed out that there is a real sense of “urgency” adding, “This is a top priority for the UK government. It not just my support, but also support of the Prime Minister. This is something that means a great deal to us.”

While the negotiations with the UK has been dragging on, India has concluded bilateral trade pacts with the United Arab Emirates and Australia in 2022 and discussion with a few other governments are currently underway. The latest round of trade negotiation is the first since Keir Starmer of the Labour Party became prime minister of the UK defeating Rishi Sunak-led Conservative Party last year.