
The India-United Kingdom Free Trade Agreement has been a topic of much discussion in recent times. Negotiations for the agreement began in 2020, and the UK's Department for International Trade stated that it aimed to conclude the talks by the end of 2021.
The UK and India have a long history of trade and economic cooperation. The two countries have been discussing a free trade agreement since 2019, with the UK's then-Prime Minister Boris Johnson announcing plans to negotiate a comprehensive FTA.
The negotiations for the agreement have been complex, involving multiple rounds of talks and discussions on various aspects of trade. The UK's Department for International Trade has been leading the negotiations, working closely with Indian counterparts to reach a mutually beneficial agreement.
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Negotiations
The UK and India have been actively negotiating a free trade agreement, with India being the largest country by total GDP that the UK was negotiating with at the time of the meeting.

The UK government's approach to these negotiations has been analyzed by various experts, including Pallavi Bhajaj, a trade and digital economy expert, and Professor Sangeeta Khorana, an international trade expert and professor of economics.
Tony Matharu, chairman of the Asian Business Association, and The Rt Hon Lord Bilimoria of Chelsea CBE DL FCA, founder and chairman of Cobra Beer, have also provided insights on the potential benefits of the deal for different parts of the UK economy.
The Commission has taken evidence on the state of the UK-India Free Trade Agreement, focusing on potential sticking points to a deal. Mohan Kaul, president of the Indian Partnership Forum, has been a key witness in this regard.
The Commission has also examined the potential human rights implications of the deal once it is secured, with witnesses including George Holt, a senior researcher with the Trade Justice Movement, and Amrita Saha, a research fellow with the Institute of Development Studies.
Additional reading: ASEAN–India Free Trade Area
UK-India Trade Deal

The UK-India trade deal is a highly ambitious agreement that's been in the making for a while. The deal is expected to be a game-changer for trade and investment between the two countries.
Witnesses have suggested that there are no red lines in the deal, and both sides are willing to make concessions to get it over the line. This collaborative approach is a positive sign for the future of trade between the UK and India.
One of the main challenges facing the deal is the issue of non-tariff barriers in India, which are blocking billions in trade and development. UK firms face huge non-tariff barriers in India, including higher tariffs than Indian firms face in the UK.
The deal is not just about India opening up to British access, but also about building a grown-up relationship between the two countries. This will take time, but it's essential for access to the UK to be granted to Indians in the same way it is granted to citizens of Commonwealth nations.
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India has signed 13 FTAs and 6 preferential trade agreements, with a recent focus on western partners like the UK, EU, and US. This shows India's commitment to expanding exports and enhancing trade relations.
Here are some of the key benefits of FTAs like the one being negotiated between the UK and India:
- Boosts Exports & Market Access: Eliminates tariffs, making Indian goods more competitive.
- Enhances Foreign Investment: Encourages FDI inflows and technology transfer.
- Diversifies Trade Relations: Reduces over-reliance on specific markets.
- Creates Jobs & Economic Growth: Expands industries and employment opportunities.
- Strengthens Strategic Partnerships: Builds diplomatic and economic cooperation.
The UK Trade and Business Commissions has published a comprehensive assessment of the state of UK trade, containing 114 recommendations to remove barriers to growth and prepare the UK economy for the challenges and opportunities of the next decade.
For more insights, see: Canada–United Kingdom Trade Continuity Agreement
Labour's Opportunity
Labour's Opportunity is a pragmatic one, considering the current state of FTA negotiations between the UK and India. The dialogue has been positive on both sides.
The current trade between the two countries is estimated at £39 billion annually, which is a significant figure. By some estimates, an FTA could double bilateral trade to US$100 billion by 2030.
Just before the elections in both countries, British Secretary of State for Business and Trade, Jonathan Reynolds, visited Delhi in February 2024 for talks with India's Commerce and Industry Minister, Piyush Goyal. This visit indicates Labour's keen interest in finalising the FTA.
Only two weeks into his new tenure, British Foreign Secretary David Lammy has already touched down in New Delhi, further indicating Labour's commitment to the FTA.
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Challenges and Analysis
The UK-India Free Trade Agreement is ambitious, with tricky areas to negotiate, but talks have been collaborative.
UK firms face higher tariffs in India than Indian firms in the UK, and non-tariff barriers are blocking billions in trade and development.
The UK Trade and Business Commissions has published a comprehensive assessment of the state of UK trade, containing 114 recommendations to remove barriers to growth.
Negotiations have been collaborative, and it's not just about India as a developing economy opening up to British access.

India wants to be seen as a data secure regime, and both countries can find a mutually beneficial middle ground.
There needs to be a grownup relationship between the two countries, built over time, with access to the UK granted to Indians in the same way it is granted to some citizens of Commonwealth nations.
The disbanding of the UK-India roundtable is negative, and business collaboration between the UK and India is crucial.
The India-Australia deal should not be replicated in the India-UK deal, as it doesn't carve out access for public procurement.
Related Search Terms
The India-UK Free Trade Agreement has been a topic of interest for many. The UK's post-Brexit trade deals have been a major focus, with the country seeking to establish new trade relationships with other nations.
One such agreement is the India-UK Free Trade Agreement, which has been in the works for some time. The Modi government's FTA strategy has been a key factor in these talks.
Here are some related search terms to help you find more information:
- India-UK Free Trade Agreement 2024
- Labour government trade policy
- Modi government FTA strategy
- Post-Brexit trade deals UK
- UK India FTA updates
Commission Sessions and Updates

The UK Trade and Business Commission has been actively engaging with India on a Free Trade Agreement. By total GDP, India is the largest country the UK was actively negotiating with at the time of the meeting.
Witnesses provided analysis on the UK government's approach to the deal, what benefits are expected from the agreement, and how different parts of the UK economy are likely to benefit.
The Commission took evidence on the state of the UK-India Free Trade Agreement, focusing on potential sticking points to a deal and the potential human rights implications once a deal is secured.
Some of the key experts who provided evidence include Pallavi Bhajaj, Trade and Digital Economy Expert, and Professor Sangeeta Khorana, International Trade Expert and Professor of Economics, Bournemouth University.
The UK has a relationship with Japan, which is the largest country by total GDP that the UK has a relationship with.
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Frequently Asked Questions
What are the benefits of India UK FTA?
The India-UK FTA aims to increase trade and investment by removing trade barriers, improving market access, and expanding opportunities in key sectors like technology, healthcare, and education. This can lead to economic growth, job creation, and improved living standards for both countries.
Sources
- https://en.wikipedia.org/wiki/India%E2%80%93United_Kingdom_Free_Trade_Agreement
- https://www.bbc.com/news/articles/ckg1xjpnkl2o
- https://www.insightsonindia.com/2025/02/27/india-uk-free-trade-agreement/
- https://www.orfonline.org/expert-speak/the-india-uk-fta-finally-coming-to-fruition
- https://www.tradeandbusiness.uk/india-fta
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