India, UK Revive FTA Talks Amid US tariff Worries

India and the UK started fresh negotiations for a long-delayed free trade agreement (FTA) after a hiatus of nearly a year. The bilateral trade between the two countries is set to be doubled to USD 40 billion from the present USD 20 billion, as per a statement released by the Indian government on Tuesday, February 25.

The announcement was made in New Delhi as India’s Commerce Minister Piyush Goyal and the UK’s Secretary of State for Business and Trade, Jonathan Reynolds, issued a joint statement. The two leaders highlighted their relations as crucial for a balanced and sustainable US-India trade deal that would promote bilateral growth and deepen the integration of the two economies.

Even though discussions have stalled, both parties are still sworn to finalizing an agreement that would benefit both economies. Commenting on any timeline for finalization of the deal, he said agreements of such nature should not be hurried nor delayed but there should be a balance to ensure that “we do not lose time”.

The push for the India-UK FTA comes as India also attempts to strike a trade deal with the European Union. This week, senior ministerial talks are likely to be held in New Delhi between India and the EU. The agenda involves the setting of trade challenges, including the Carbon Border Adjustment Mechanism (CBAM), under the Trade and Technology Council established from the side of India and the EU.

But the latest tariff threats from the United States have cast uncertainty over India’s trade landscape. US President Donald Trump’s threat of-upping tariffs has overshadowed India’s economic ties with one of its top trading partners.

As India watches the situation with the UK and the EU, it aims to solidify its trade ties there but will face a changing global landscape in the process. With both Indian and UK governments eager for a deal, negotiations continue aiming for economic stability and growth.