U.K. Prime Minister Rishi Sunak has been actively pursuing a trade agreement with India, one of the world’s fastest-growing economies. His plans for a return trip to India in October to finalize the pact are still in motion.
The meeting between Sunak and Indian Prime Minister Narendra Modi on the sidelines of the G20 summit in New Delhi earlier this month provided further momentum to the negotiations, now in their 13th round in London.
However, certain issues in the agreement need to be worked out:
– the absence of enforceable dispute resolution powers
– the perception that the trade deal might put British companies at a disadvantage
– the deal’s long-term impact on workers and the environment in both countries.
U.K.’s Department for Business and Trade said it does not comment on live negotiations and that it will only sign a deal that benefits the U.K. and its economy.
Adding enforceable chapters would slow down negotiations, said an Indian government official. “If you put in too much of these things into a trade deal, then it delays the process.” The U.K. and India are already “bound by” their international commitments on labor and climate, they added.
As of now, it isn’t clear when the trade deal will be signed. A free trade deal between India and U.K. is expected to promote trade and investment.
Last updated: December 26th, 2025
