UK India Business Council Supports Resumption of Free Trade Agreement Talks Between India and the UK

The UK India Business Council (UKIBC) has expressed approval for the UK's decision to resume Free Trade Agreement (FTA) discussions with India in early 2025. This announcement came from British Prime Minister Keir Starmer's office after his meeting with Prime Minister Narendra Modi during the G20 Summit in Brazil. The proposed trade agreement aims to boost employment and economic prosperity.

Representative image

UKIBC, a not-for-profit organisation focused on enhancing bilateral trade and investment, has been actively involved in facilitating FTA negotiations since January 2022. "We are delighted that the FTA negotiations will re-start early next year. This is an exciting chapter of the UK-India partnership," said Kevin McCole, UKIBC Managing Director. "Negotiations are complex – it is, after all, the world’s fifth and sixth largest economies preparing for a comprehensive FTA – and it is important to secure a fair and ambitious deal," he said.

Economic Growth and Bilateral Trade

The UKIBC has engaged with ministers and senior officials from both governments throughout 13 negotiation rounds. They have observed a strong commitment from both sides to finalise this agreement. The discussions were paused during the fourteenth round due to election cycles in both countries. The FTA talks, initially started under a Conservative government, are now being continued by a Labour-led administration.

Starmer emphasised the importance of economic growth for improving living standards. He stated, "Boosting economic growth is key to improving living standards for working people. A new trade deal with India will support jobs and prosperity in the UK – and represent a step forward in our mission to deliver growth and opportunity across our country."

Impact on Jobs and Prosperity

Concluding the FTA is expected to enhance student and worker exchanges and strengthen research collaborations between the two nations. This will contribute to economic growth in both countries, creating jobs and prosperity while also benefiting global interests. The UKIBC noted that numerous chapters have been discussed for the FTA, aiming to improve bilateral trade valued at GBP 42 billion as of June 2024.

The resumption of these talks marks a significant step in fostering stronger economic ties between India and the UK. Both nations are keen on achieving a fair and ambitious deal that benefits their economies. As negotiations progress, there is optimism about reaching an agreement that supports mutual growth and development.