06 May 2025 (Punjab Khabarnama Bureau): India and the UK on Tuesday announced a broad trade deal that removes tariffs on a majority of goods and services in a move that could serve as precursor to similar agreements between New Delhi and other nations including the US.
Prime Minister in a tweet announced the deal, describing it as a “historic milestone” and said he looked forward to meeting UK PM Keir Starmer in India soon.
Following an April 28 visit to London by Union commerce minister Piyush Goyal, both countries had anticipated announcing the conclusion of negotiations on April 29, but discussions were extended at the last minute.
The India-UK free trade deal came after negotiations were resumed in February after a nine-month pause. It assumes significance against a backdrop of disruption in global trade after US President Donald Trump announced reciprocal tariffs on trading partners that are currently in abeyance until July 9. India is simultaneously negotiating free trade deals with the US and several other countries.
Negotiations with the UK, which began on January 13, 2021, initially advanced rapidly during Prime Minister Boris Johnson’s tenure before slowing amid political changes in London. Talks regained momentum since the 14th round resumed in February 2025 after Prime Minister Keir Starmer’s government took office.
Goyal and UK Trade Secretary Jonathan Reynolds announced the resumption of negotiations on February 24 following a nine-month pause. Finance minister Nirmala Sitharaman’s UK visit on April 9 further accelerated discussions, during which she met with PM Starmer, Chancellor Rachel Reeves, and Reynolds.
Factors contributing to the delays primarily involved techno-legal matters concerning trade, investment and social security issues
Negotiators reportedly reached solutions addressing New Delhi’s key concerns about business mobility and London’s demands for greater market access for automobiles and Scotch whiskies.
Summary: India and the UK finalize a landmark free trade agreement after prolonged negotiations, aiming to boost bilateral trade and investment.