The IndiaâUnited Kingdom free trade agreement is a proposed
free trade agreement which began negotiations in January 2022.[1] When completed it will be the first comprehensive free trade agreement that India has signed with a European country; it is expected be the third trade agreement signed by Britain since
leaving the
European Union negotiated completely anew.[2]
In May 2021,
British Prime MinisterBoris Johnson and
Indian Prime MinisterNarendra Modi agreed deeper trade co-operation between the two countries.[15] This âEnhanced Trade Partnershipâ removed a number of trade barriers and
set out the two countriesâ intention to work towards a free trade agreement.[16]
India and the UK launched negotiations in January 2022.[17] Johnson declared that the agreement should be completed by
Diwali 2022.[18][19] Despite this, in October
2022, the
Secretary of State for International Trade,
Kemi Badenoch, said that
the Government was no longer working to this deadline.[20] She stated that the
Government wanted âto focus on the quality of the deal rather than the speed
of the dealâ.[21]
By December 2023, the UK and India had reached the 13th round of negotiations, deciding to fast track the agreement in order to complete prior to the elections in both countries the following year.[2] Negotiations between both countries are locked in several issues, one of which is the UK's concerns about agreeing to visas for professionals demanded by India.[22] The thirteenth round of negotiations concluded on 18 December 2023.[14]
The fourteenth round of negotiations began on 10 January 2024.[23] India had been pushing to include social security payments for Indian workers in the UK, Badenoch is reportedly âkeen to avoidâ this.[24] In March, UK Negotiators flew to India in a âlast-gasp attempt to clinch an FTA before the Indian election campaign pauses talksâ, according to a UK government official, adding that India believes âthey will get more out of
Labour on
visas and social securityâ.[25]Shadow Secretary of State for Business and TradeJonathan Reynolds and
Shadow Foreign SecretaryDavid Lammy visited India the month prior to talk with Indian officials.[26] The UK is asking for access in India's government procurement as well as signing a
bilateral investment treaty before concluding the FTA.[27] Some British trade officials are increasingly pessimistic about the India deal and see a
free trade agreement with the
Gulf Cooperation Council as a more realistic deal which can be struck prior to the
next election.[25] The fourteenth round of negotiations remain open without a breakthrough on major outstanding issues between the two countries, India became primarily focused on their upcoming
general election.[28] Badenoch stated that
she would not use the Indian elections as a deadline, just prior to India signing a free trade agreement with the
European Free Trade Association, whose members include
Iceland,
Liechtenstein,
Norway, and
Switzerland.[29] On 12 March, Modi and British Prime Minister
Rishi Sunak agreed to work for an early conclusion of the free trade agreement, during a phone call.[30][31]
On 15 March, it was announced that negotiations will be "put on ice" until spring after India's election concludes.[32][33] At the beginning of April, the
Indian Ministry of Commerce and Industry placed the completion of IndiaâUK FTA as their priority for 100-day agenda after a new government takes charge.[34] Despite the fourteenth round being declared the prior month, the round remained open by request of India in April 2024; India demanded an exemption from the UKâs planned
carbon tax, as well as concessions on
visas for Indian workers and, a social security agreement.[35] On 28 May, a high-ranking British
delegation had abruptly cancelled its scheduled visit to New Delhi, due to the
snap election announcement in the UK a few days prior.[36]
Following Modi's re-election on 4 June, which was received positively by UK-based strategic experts and poll watchers, Modi maintained his party's stated objective to conclude the UK-India FTA negotiations within those first 100 days.[38] India had to wait until 4 July for the conclusion of the British general election, in order to resume negotiations for the FTA.[39]