India, UK to resume talks on proposed trade agreement from Feb 24: Official

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India and the UK are expected to resume the talks for the proposed free trade agreement from February 24, an official said.

The UK trade minister is likely to visit the national capital soon, the official said.

The talks for the proposed FTA began in January 2022. The 14th round of talks stalled as the two nations stepped into their general election cycles.

The agreement is aimed at boosting bilateral trade and investments.

In such pacts, two countries either eliminate or significantly reduce customs duties of maximum goods traded between them. They also ease norms for promoting trade in services and bilateral investments.

The Indian industry is demanding greater access for its skilled professionals from sectors like IT and healthcare 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 talks for the agreement may get an impetus as Finance Minister Nirmala Sitharaman on Saturday proposed to raise the foreign investment limit to 100 per cent in the insurance sector as part of new-generation financial sector reforms.

Presenting Union Budget 2025-26, the Finance Minister has said the foreign direct investment (FDI) limit for the insurance sector will be raised from 74 per cent to 100 per cent.

The two countries are also negotiating a bilateral investment treaty (BIT).

There are 26 chapters in the agreement, which includes goods, services, investments and intellectual property rights.

The bilateral trade between India and the UK increased to USD 21.34 billion in 2023-24 from USD 20.36 billion in 2022-23.