India and Britain can resume a conversation on the Free Trade Agreement (FTA) at the end of this month after nearly a year of blockage.
Two people who have been aware of the case told business standard that a team led by Britain’s trade and commerce minister Jonathan Reynolds will come to New Delhi on February 24. The last time a conversation was held between the two countries in March 2024.
The conversation between India and Britain began 3 years ago. At that time there was a Conservative Government under the leadership of Boris Johnson in Britain and a target of agreement was set in 9 months. However, the agreement was delayed due to political instability in the UK, disagreement over several issues and general elections in both countries between April and July.
Subsequently, during the G20 conference held in Brazil in November, it was announced to start a re-interaction on the FTA after a meeting between Prime Minister Narendra Modi and British Prime Minister Kir Stmper. The FTA includes the movement of skilled professionals, India demand in the service sector, the UK relief from the proposed carbon border tax. At the same time, Britain is demanding to reduce fees on HWSKI and Automobile, open law, architecture and financial services.
Both sides are struggling to end the differences of bilateral investment Treaty (BIT) for dispute resolution. The positive side is that the Union Budget 2025-26 has said a change in the existing model of BIT, so that it can be made more favorable to investors and encourages sustainable foreign investment.
If the proposed trade agreement between India and Britain takes embodiment, it will be strategically and economically important for both countries. Britain is actually the 16th business partner of India. The two countries have a trade of $ 15 billion in the first 8 months of the current financial year.