Archive · 2 Jun 2025
India-UK FTA Negotiations Face Delays Due to Outstanding Issues
India and the UK are trying to make a deal called a Free Trade Agreement (FTA).
This deal would make it easier for businesses in both countries to trade with each other.
But it's taking longer than expected.
There are disagreements about some things, like how long certain agreements should last (sunset clause), where data should be stored (data localization), and a new tax in the UK (carbon tax).
Both countries want different things from the deal.
India wants it easier for its skilled workers and goods to enter the UK.
The UK wants lower taxes on goods like whisky and cars from them.
They're still talking, but it might take a while to agree.
Negotiations for the India-UK Free Trade Agreement (FTA) are facing delays.
Key issues include the sunset clause in the Bilateral Investment Treaty (BIT), data localization, and the UK's carbon tax.
India's Commerce and Industry Minister met with the UK Secretary of State for Business and Trade to advance talks.
Bilateral trade between the two countries was $21.34 billion in FY 2023-24.
The FTA negotiations launched on January 13, 2022; talks paused in March 2024.
- Who
- India and the United Kingdom.
- What
- Delay in finalizing the Free Trade Agreement (FTA) between India and the UK.
- When
- Negotiations paused in March 2024, talks ongoing after launch on January 13, 2022.
- Where
- Between India and the United Kingdom.
- Why
- Disagreements on issues like sunset clause, data localization, and UK's carbon tax are delaying the FTA.
India's Perspective
UK's Perspective
Trade Priorities
India's Perspective
Seeking greater access for skilled professionals in IT, ITeS, and healthcare sectors.
UK's Perspective
The UK is seeking cuts in import duties on goods like scotch whisky, electric vehicles, and other products.
- FTA Negotiations Launched
- January 13, 2022
- Negotiations Paused
- March 2024
- Bilateral Trade (FY23-24)
- $21.34 billion
- India's Duty on UK Goods
- 4.2%
- Key Issues
- Sunset clause, data localization, carbon tax