‘Speed but not haste’: India and UK renew their trade vows after eight-month pause

India and the UK have resumed negotiations for a free-trade agreement (FTA) after an eight-month break on Monday, February 24, with the two sides of the table focussing on a triple hike in bilateral trade with a ‘mutually beneficial and forward-looking’ deal by going past tariff and non-tariff issues while protecting each other’s ‘sensitivities’. The statement of affirmation was mutually declared by India’s commerce minister, Piyush Goyal, and UK Secretary of State for Business and Trade, Jonathan Reynolds.

The Bilateral Trade Agreement sessions between the United Kingdom and India involve negotiation on 26 tangents, which include goods and services, intellectual property rights, sustainability along with labour rights for both nations.

According to the International Monetary Fund (IMF)-released World Economic Outlook (October 2024), India’s estimated per capita GDP for 2025 stands at USD 2.94 thousand, whereas the UK soars at USD 54.28 thousand. However, the real GDP growth is estimated at 6.5 per cent, and the United Kingdom is anticipated to grow by 1.5 per cent in 2025.

With the growth of GDP, India’s economy is expanding. The calculation is made, taking into account inflation adjustments, meaning it shows the true increase in the value of all goods and services produced within the country over a specific period without being distorted by price fluctuations. It, essentially, is a measure of the actual economic growth experienced by India and is considered a more accurate indicator than nominal GDP growth. 

Thus, a both-way free trade agreement paves the way for these two ambitious countries to achieve their trade goals. “The strengthening of the trading relationship between our two countries has the potential to unlock opportunities for business and consumers across both our nations and build further on our already deep ties,” the two countries said in a joint statement after the ministerial meeting in New Delhi.