India and UK FTR: India and the United Kingdom (UK) are set to restart negotiations for their proposed free trade agreement (FTA) on February 24, 2025, according to an official source. The UK’s trade minister is expected to visit New Delhi soon to move the discussions forward.

Talks for this proposed free trade agreement first began in January 2022 but were put on hold during the general election cycles in both countries after the 14th round. The agreement aims to strengthen trade and investment ties by cutting or removing customs duties on most goods and easing rules to promote services and investments.

India is pushing for better access for its skilled professionals in sectors like IT and healthcare in the UK. Furthermore, it seeks duty-free market entry for several goods. Meanwhile, the UK wants lower import duties on products like scotch whiskey, electric vehicles, lamb meat, chocolates, and confectionery. The UK also hopes to expand opportunities for its services in India's telecommunications, legal, financial, and insurance sectors.

The negotiations may get a boost following Finance Minister Nirmala Sitharaman’s latest announcement in the Union Budget 2025-26 to increase the foreign direct investment (FDI) cap in the insurance sector from 74 percent to 100 percent, as part of broader financial reforms.

In addition to the FTA, both countries are working on a bilateral investment treaty (BIT). The agreement covers 26 chapters, including goods, services, investments, and intellectual property rights.

Bilateral trade between India and the UK grew to USD21.34 billion in 2023-24, up from USD20.36 billion in 2022-23.

In January, Commerce and Industry Minister Piyush Goyal met with European Commissioner for Trade Maros Sefcovic in Brussels to review progress on India-EU trade talks. Both sides committed to building a meaningful trade agenda and fast-tracking a comprehensive free trade agreement (FTA).

India and the 27-nation EU bloc had resumed trade talks in June 2022 after an eight-year break, with previous negotiations stalling in 2013 over key disagreements. In 2023-24, total trade between India and the EU reached USD180 billion. India exported USD75.18 billion in goods and USD31.13 billion in services to the EU, while the EU exported USD63.44 billion in goods and USD31.35 billion in services to India. The EU remains a key source of FDI for India, with investments totaling USD117.34 billion.