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India-UK: Jonathan Reynolds in Delhi to relaunch trade talks | India-UK: Jonathan Reynolds in Delhi to relaunch trade talks |
(31 minutes later) | |
A trade deal with India is among the key priorities for the Labour government | A trade deal with India is among the key priorities for the Labour government |
India and the UK will restart free trade talks on Monday, nearly a year after negotiations were paused ahead of general elections in both countries. | India and the UK will restart free trade talks on Monday, nearly a year after negotiations were paused ahead of general elections in both countries. |
Jonathan Reynolds, the UK's business and trade secretary, is in Delhi, where he will meet his Indian counterpart Piyush Goyal to kick off the two-day discussions. | Jonathan Reynolds, the UK's business and trade secretary, is in Delhi, where he will meet his Indian counterpart Piyush Goyal to kick off the two-day discussions. |
Ahead of the meeting, Reynolds said it was a "no-brainer" to seek a trade deal with India, which was forecast to become the world's third-largest economy in a few years. | Ahead of the meeting, Reynolds said it was a "no-brainer" to seek a trade deal with India, which was forecast to become the world's third-largest economy in a few years. |
The countries have held more than a dozen rounds of negotiations since 2022, but an agreement has remained out of reach. | The countries have held more than a dozen rounds of negotiations since 2022, but an agreement has remained out of reach. |
Sticking points include high tariffs in India on Scotch whisky and demands to relax fees and visa rules for Indian students and professionals going to the UK. | |
Talks are being held for the first time after the Labour Party came to power in the UK and Reynolds says securing a deal is a "top priority" for his government. | Talks are being held for the first time after the Labour Party came to power in the UK and Reynolds says securing a deal is a "top priority" for his government. |
"Growth will be the guiding principle in our trade negotiations with India and I'm excited about the opportunities on offer in this vibrant market," he said in a statement. | "Growth will be the guiding principle in our trade negotiations with India and I'm excited about the opportunities on offer in this vibrant market," he said in a statement. |
Jonathan Reynolds, the UK's business and trade secretary, is in Delhi for the talks | Jonathan Reynolds, the UK's business and trade secretary, is in Delhi for the talks |
For Delhi, the trade talks have assumed renewed significance on the back of US President Donald Trump's decision to impose reciprocal or tit-for-tat tariffs on imported goods from countries, including India. | For Delhi, the trade talks have assumed renewed significance on the back of US President Donald Trump's decision to impose reciprocal or tit-for-tat tariffs on imported goods from countries, including India. |
The UK is also a high-priority trading partner for Prime Minister Narendra Modi's government, which has an ambitious target to grow exports by $1 trillion by FY30. | The UK is also a high-priority trading partner for Prime Minister Narendra Modi's government, which has an ambitious target to grow exports by $1 trillion by FY30. |
The UK had announced in November last year - soon after Sir Keir Starmer met PM Modi at the G20 summit in Brazil - that talks would restart in the new year. | The UK had announced in November last year - soon after Sir Keir Starmer met PM Modi at the G20 summit in Brazil - that talks would restart in the new year. |
The two countries share a trade relationship worth £41bn ($52bn) currently, according to a UK government statement, and a trade deal could unlock new opportunities for both countries. | The two countries share a trade relationship worth £41bn ($52bn) currently, according to a UK government statement, and a trade deal could unlock new opportunities for both countries. |
London has identified sectors that could benefit, which include advanced manufacturing, clean energy and professional and trade services. An agreement could also potentially unlock a valuable market for British cars, Scotch whisky and financial services worth billions of dollars. | |
India is seeking greater mobility for its working professionals and students to the UK, while pushing for faster visa processing times. | India is seeking greater mobility for its working professionals and students to the UK, while pushing for faster visa processing times. |
It may also seek concessions for its residents working temporarily in the UK on business visas, who are required to pay national insurance but are still ineligible for social benefits. | It may also seek concessions for its residents working temporarily in the UK on business visas, who are required to pay national insurance but are still ineligible for social benefits. |
During Reynolds' visit, he and Goyal will also visit the BT office in the northern Indian city of Gurugram. | During Reynolds' visit, he and Goyal will also visit the BT office in the northern Indian city of Gurugram. |
UK Investment Minister Poppy Gustafsson is also in India and will be participating in events in India's two big business hubs - Mumbai and Bengaluru. | UK Investment Minister Poppy Gustafsson is also in India and will be participating in events in India's two big business hubs - Mumbai and Bengaluru. |
After years of scepticism over free trade deals, India has been signing agreements or is in talks with several countries or blocs. Last year, it signed a $100bn free trade agreement with the European Free Trade Association - a group of four European countries that are not members of the European Union - after almost 16 years of negotiations. | After years of scepticism over free trade deals, India has been signing agreements or is in talks with several countries or blocs. Last year, it signed a $100bn free trade agreement with the European Free Trade Association - a group of four European countries that are not members of the European Union - after almost 16 years of negotiations. |
It is also set to resume negotiations with the European Union this year. | It is also set to resume negotiations with the European Union this year. |
Follow BBC News India on Instagram, YouTube, Twitter and Facebook. | Follow BBC News India on Instagram, YouTube, Twitter and Facebook. |