Renewed Push for India-UK Free Trade Agreement Under New UK Government

With the new Labour government in Britain, the free trade agreement (FTA) between India and the UK is expected to gain momentum. Experts highlight the importance of the FTA in boosting exports and facilitating deeper cooperation in various sectors. However, reduced net migration may pose challenges.

The newly elected Labour government in Britain is set to invigorate the proposed free trade agreement (FTA) with India, which experts say could benefit both economies significantly.

Analysts point out that the UK's focus on promoting service export sectors will likely see negotiations on digital economy and mutual recognition agreements. Deep Kapuria, Chairman of Hi-Tech Gears, suggested that this fresh strategic partnership may also encompass security, technology, and climate change, although the UK's goal of reducing net migration could hinder FTA finalization.

Commerce Minister Piyush Goyal reiterated India's commitment to the FTA, as bilateral trade surged to USD 21.34 billion in 2023-24. UK Prime Minister Keir Starmer expressed readiness to conclude an agreement advantageous for both countries, despite unresolved issues in goods and services sectors.

(With inputs from agencies.)