India and UK Advance Trade Pact for Prosperous Partnership

India and Britain are keen to double their bilateral trade within a decade, as they resume trade negotiations amid concerns over U.S. tariff threats. Both nations aim for a transformative trade agreement that includes a free trade pact and an investment treaty, despite hurdles like high tariffs on whisky and visa regulations.

India and the UK have set a formidable goal to double their bilateral trade in the next ten years as they resumed negotiations despite looming U.S. tariff threats. The discussions, labeled as ‘path-breaking’ by Indian Trade Minister Piyush Goyal, include plans for a free trade agreement and an investment treaty.

The resumption of trade talks traces back to discussions held between the countries' prime ministers during the G20 summit in November, before Donald Trump’s inaugural presidency impacted global trade dynamics. Currently, their economic exchange stands at £41 billion in goods and services, placing India and Britain respectively as the fifth and sixth-largest economies worldwide.

Major sticking points remain unresolved, like India's high import duty on British whisky and visa regulation barriers for Indian professionals. Both governments, however, downplay immigration issues and focus on a separate social security treaty. Securing a trade deal remains a top priority for the recently instated Labour government in the UK.