India and the United Kingdom will launch negotiations on free trade agreement (FTA) by November 2021. The decision was taken at a meeting between Commerce and Industry Minister Piyush Goyal and his British counterpart Secretary of State for International Trade Elizabeth Truss. British Prime Minister Boris Johnson is anxious to shore up trade relations around the world in the wake of Brexit and India is one of the largest investors in the United Kingdom already.
The two nations will look for an interim agreement as a priority, with a more comprehensive and larger FTA later on. This ‘early harvest’ agreement will allow both sides to establish early gains in some select commodities and services.
Goyal said that substantial work has already been done and extensive stakeholder consultations have been held involving Industry / Business associations, Export Promotion Councils, Buyers/Sellers Associations, Regulatory Bodies, Ministries/Departments, public research bodies, etc. The consultation paper was also made public for wider participation as well.
The minister added that bilateral working groups for different tracks have been formed to understand ambitions, interests, and sensitivities of each other to facilitate accelerated progress during negotiations. He was hopeful that these discussions would help both sides in understanding each other’s policy regimes when they begin their Joint Scoping discussions on October 1, 2021, when the Terms of References will be finalized for launch of negotiations in November.
If necessary, India may also explore signing Mutual Recognition Agreements in selective services such as nursing and architecture. Goyal has repeatedly emphasized the need to strike a balance between commitments and concessions in the goods and services trade.
Last updated: December 26th, 2025
