India and Britain Aim to Double Bilateral Trade in a Decade, Says Trade Minister
India and Britain will aim to more than double bilateral trade in a decade, according to Indian Trade Minister Piyush Goyal. The two countries resumed trade talks under the shadow of tariff threats from U.S. President Donald Trump.
Speeded-Up Talks
The countries will speed up talks on a proposed trade deal, including a free trade pact and an investment treaty, Goyal said at a joint press conference with Britain’s Business and Trade Secretary, Jonathan Reynolds.
No Impact from Trump’s Tariffs
The ministers did not respond directly to questions about whether their talks were impacted by Trump’s orders to raise tariffs and take other measures to counteract what he sees as barriers to American goods.
Path-Breaking Free Trade Agreement
"This will be a path-breaking free trade agreement," Goyal said, adding it could boost merchandise trade with Britain two to three times within a decade, without giving a detailed timeline.
Bilateral Trade
Bilateral trade in goods and services between India and Britain, currently the world’s fifth and sixth-largest economies respectively, touched £41 billion ($52 billion) in the 12 months through September 2024, British government estimates show.
Trade Talks Paused
Trade talks were paused in March last year ahead of elections in both countries.
Key Hurdles
Key hurdles include India’s steep import duty on British whisky and its demand to make it easier for Indian firms and professionals to get visas to work in Britain.
Immigration Not Part of Trade Pact
"There are always sensitivities in trade negotiations that you have to respect," Reynolds said, citing India’s concerns over Britain’s demands for India to lower agricultural tariffs and open its market for dairy products. Goyal rejected some media reports, saying immigration would not be a part of any discussions under the trade pact.
Conclusion
India and Britain are set to resume trade talks, with the aim of doubling bilateral trade in a decade. While the talks will focus on a proposed free trade pact and investment treaty, there are concerns over key hurdles, including India’s import duty on British whisky and its demand for easier visas for Indian professionals.
Frequently Asked Questions
- What is the goal of the India-UK trade talks?
The goal is to double bilateral trade in a decade. - What are the key areas of focus in the talks?
The talks will focus on a proposed free trade pact and investment treaty. - Are immigration issues part of the trade pact?
No, immigration is not part of the trade pact.
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