On Monday, Commerce and Industry Minister Piyush Goyal held a “productive” meeting with Jonathan Reynolds, the UK Secretary of State for Business and Trade, as part of his two-day visit to the UK. The discussion focused on advancing the long-pending Free Trade Agreement (FTA) negotiations. Goyal shared on X, "Arrived in London for two days of engaging discussions aimed at strengthening bilateral trade and investment relations. In my first engagement, I had a productive meeting with Jonathan Reynolds to push forward FTA talks, reinforcing our commitment to enhancing India-UK economic ties."

The talks centered on reducing tariffs, expanding market access, and simplifying trade regulations through the FTA. The urgency to finalize the deal is driven by the US’s plan to implement country-specific reciprocal tariffs, which are now delayed until July 9. This meeting takes place amid a global trade shift due to protectionist policies from the US.

Government officials indicated that negotiations between India and the UK are nearing completion. Earlier this month, Finance Minister Nirmala Sitharaman visited London to further push bilateral investment treaty (BIT) discussions. However, both sides have faced challenges in resolving differences over dispute resolution mechanisms.

In an effort to move forward, the Union Budget for 2025-26 proposed revamping India’s current BIT model to make it “more investor-friendly” to attract foreign investment. Besides BIT, a few other issues remain unresolved, including India's push for a social security pact and the UK’s demand for greater market access in financial services. India has also raised concerns over the UK’s planned carbon border adjustment mechanism, set to take effect in 2027, while the UK has been pressing for lower tariffs on whiskey and automobiles.

India and the UK resumed formal FTA, BIT, and social security agreement negotiations in February after nearly a year-long break. This marks the second meeting between Goyal and his UK counterpart since the relaunch of FTA talks. These negotiations began in January 2022, with an ambitious goal of concluding the deal within nine months. However, political instability in the UK, unresolved issues, and elections in both countries delayed the process.