India-UK FTA Talks Again Hit a Wall, Next Round With EU on May 12

India and the United Kingdom failed to finalise their Free Trade Agreement (FTA) even after two-day rigorous negotiations, reported Business Standard citing a source aware of the matter. Reportedly, both parties could not resolve the four or five outstanding issues of their long-standing FTA talks.

“Both sides tried to finalise the deal during these two days, but couldn’t close the negotiations. Four-five issues still need to be sorted,” the source informed the newspaper without specifying the exact points of contention.

Though preparations were underway for a formal announcement, the expected agreement fell through as negotiations ended without a resolution. Both sides are now working to resume talks soon to bridge the remaining gaps.

This development followed Commerce and Industry Minister Piyush Goyal's two-day visit to the UK. He engaged in discussions with his UK counterpart, Business and Trade Secretary Jonathan Reynolds, soon after he arrived in London on Monday morning.

“In my first engagement, held a productive meeting with the UK Secretary of State for Business and Trade Jonathan Reynolds to advance Free Trade Agreement negotiations, reinforcing our commitment to deepening India-UK economic ties,” Goyal said.

Ahead of the meeting, a spokesperson from UK Department for Business and Trade (DBT) said that their government is committed to doing the right deal with India which will improve access for UK businesses, cut tariffs, and make trade cheaper and easier.

Goyal’s visit comes soon after Finance Minister Nirmala Sitharaman’s London visit earlier this month, when she had highlighted a “great sense of positivity and also eagerness and a dedication" to have the FTA conclude "sooner rather than later".

India's Trade Rush

Earlier, Outlook Business reported that following US President Donald Trump's decision to impose "reciprocal" tariffs on its trading partners, India rushed to close conclude some of the ongoing FTA negotiations.

In March alone, India held discussions around FTAs with over 10 of its trading partners including the European Union. In fact, India and New Zealand resumed their trade talks after almost a decade. India is scheduled to hold the next round of trade talks with the EU on May 12.