The UK and India have officially restarted negotiations on a free trade deal, with UK Business and Trade Secretary Jonathan Reynolds visiting India to spearhead discussions aimed at
unlocking a major economic opportunity.
Reynolds will meet with India’s Commerce Minister Piyush Goyal in New Delhi today to set the stage for a trade agreement that could boost UK business access to India—on track to become the world’s third-largest economy by 2028.
As part of the UK’s broader push to attract investment, Investment Minister Poppy Gustafsson will engage with key stakeholders in Mumbai, India’s financial hub, and Bengaluru, a leading tech powerhouse.
Strengthening economic ties
With India projected to have the fastest-growing economy in the G20 for the next five years and an estimated 95 million middle-class consumers by 2035, the UK sees enormous potential for business expansion. A trade deal would not only reinforce economic ties but also align with the UK government’s Plan for Change, focused on economic stability, job creation, and increased prosperity.
Business and Trade Secretary Jonathan Reynolds stated:
“Securing a trade deal with what is soon-to-be the third biggest economy in the world is a no-brainer, and a top priority for me and this Government. That is why I’m flying to New Delhi with our top negotiating team to show our commitment to getting these talks back on track.
Only a pragmatic government can deliver the economic growth and stability that the British public and British businesses deserve, delivering on the Plan for Change.
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”.
First formal talks under new UK leadership
For the first time under the current UK government, trade ministers from both nations will sit down for two days of intensive negotiations, aiming to craft a modern economic partnership.
Saif Malik, CEO of Standard Chartered UK, welcomed the renewed discussions:
“Strengthening trade ties with one of the world’s fastest-growing markets is a fantastic opportunity for British businesses. With our longstanding presence in India, we see major growth potential across consumer markets, manufacturing, infrastructure, innovation, and financial services.”
Richard Heald, Chair of the UK India Business Council, echoed this sentiment:
“The UK Government’s visit reaffirms its commitment for a new ambitious and future-focused trade & investment relationship with India.
We are delighted to note the progress on the UK-India Free Trade Agreement negotiations. Success in the FTA will support further economic growth for the world’s 5th and 6th largest economies. It will catalyse collaboration beyond into other areas too. Importantly, it will signal the UK and India are strategic partners. This is truly an exciting chapter of the UK-India partnership”.
Showcasing UK-India collaboration
The relaunch of trade talks will be marked by joint visits to key sites in India, including Delhi’s National Crafts Museum and BT India’s Gurugram office, one of the largest UK employers in the country. This visit highlights how British technology and Indian talent are working together to tackle global challenges.
Meanwhile, Investment Minister Poppy Gustafsson will meet investors in Mumbai and Bengaluru, emphasizing why the UK remains a prime destination for Indian businesses. India has consistently ranked as the UK’s second-largest source of foreign direct investment (FDI), with a 28% increase in investment stock at the end of 2023.
A future-focused trade deal
The UK and India, currently the sixth and fifth largest global economies, share a trade relationship valued at £41 billion, supporting over 600,000 jobs across both nations.
A well-structured trade deal could open up new opportunities for businesses and consumers, boost wages, and drive growth in key sectors such as advanced manufacturing, clean energy, financial services, and technology—all central to the UK’s upcoming Industrial Strategy.
As negotiations progress, both nations aim to finalize a future-focused trade agreement that strengthens economic ties, fosters innovation, and benefits businesses on both sides of the trade corridor. Photo by Fred Romero from Paris, France, Wikimedia commons.