India, UK trade agreement 'genuinely beneficial' for both: British Trade Secretary Reynolds

New Delhi: The proposed free trade agreement (FTA) between India and the United Kingdom is "genuinely beneficial" to both countries as it would help boost bilateral trade and investments, UK Secretary of State for Business and Trade Jonathan Reynolds said on Tuesday.

India and the UK on Monday announced resumption of negotiations for the FTA, which is expected to double or even triple bilateral trade from the current $20 billion in the next 10 years.

Reynolds met Commerce and Industry Minister Piyush Goyal to discuss about the agreement.

After concluding the two-day talks with the Indian minister, Reynolds said: "This is about an agreement which is genuinely beneficial to both countries. That is possible. That's the prize. Getting it right is what we are here to do, and that's what we are working very hard towards".

Terming it a "substantial" agreement, he said these pacts make a "real difference if you" get them right.

The negotiations are resuming after a gap of over eight months. The talks are happening following the UK general elections, which resulted in the Labour Party coming to power. The talks were launched on January 13, 2022.

"I am very encouraged by the progress we have been able to make," Reynolds told PTI.

The two countries are actively negotiating at three different fronts - FTA, bilateral investment treaty (BIT), and a Double Contribution Convention Agrement.

"I gave assurances about the strengths of our commitment to the FTA and the investment treaty...," the UK Secretary of State for Business and Trade added.

Further, he noted that the two economies are complementary in terms of services, and goods.

"This (India) is such an important market for UK goods," he said adding huge demand is also there in the UK for Indian goods and services.

Goyal has said that the agreement will be "pathbreaking" and would provide huge opportunities to grow "our current $20 billion bilateral trade in merchandise to probably two or three times in the next 10 years".

He added that enthusiasm is there in both the countries about the FTA. "Going forward, our trade relations will further strengthen." In the FTA, India is looking for greater access for its students and professionals in the UK market, besides market access for several goods at nil customs duty.

On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, electric vehicles, lamb meat, chocolates and certain confectionary items.

Britain is also looking for more opportunities for UK services in Indian markets in segments like telecommunications, legal and financial services, including banking and insurance.

The bilateral trade between India and the UK increased to $21.34 billion in 2023-24 from $20.36 billion in 2022-23. Britain is the sixth-largest investor in India. The country has received $35.3 billion FDI during April 2000 and September 2024.

The negotiations for the trade pact come at a time when US President Donald Trump has announced imposing reciprocal tariffs on imported goods from America's all trade partners, including India.