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UK scrambles for India trade deal to revive flatlining economy | Politics | News

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Last updated: February 24, 2025 8:32 am
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Published: February 24, 2025
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Business Secretary Jonathan Reynolds will restart trade talks between India and the UK on Monday during a visit to New Delhi.

He will meet his Indian counterpart Piyush Goyal to kick off the two-day discussions nearly a year after negotiations were paused ahead of general elections in both countries.

Mr Reynolds said it was a “no-brainer” to seek a trade deal with India, with an arrangement said to be worth £41billion. The country is also forecast to become the world’s third-largest economy in a few years.

The UK and India have held more than a dozen rounds of negotiations since 2022 but an agreement has not been reached.

High tariffs in India on Scotch whisky and demands to relax fees and visa rules for Indian students and professionals going to the UK have proved to be sticking points so far.

This is the first time talks are being held since Labour came to power in July last year.

Mr Reynolds said sealing the deal was “a top priority” for him and that he was “not afraid to take the tough decisions needed”.

The trade talks have assumed renewed significance following US president Donald Trump’s decision to impose reciprocal tariffs on imported goods from countries including India.

Boris Johnson and Liz Truss both set Diwali deadlines to reach agreements but failed to get them over the line.

Under Rishi Sunak, negotiators got close to finalising a deal but this was put on ice when the UK election was triggered.

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