Earlier in the year, Commerce Minister Piyush Goyal had expressed his confidence that the CETA, signed in July 2025, would be implemented in May 2026. Photo: DPR PMO/ANI Photo

London Mayor Dame Susan Langley.
| Photo Credit: Aditya Shirsekar

Prime Minister Narendra Modi shakes hands with his British counterpart Keir Starmer after Britain’s Secretary of State for Business and Trade, Jonathan Reynolds and Union Minister Piyush Goyal signed a free trade agreement, at Chequers Estate, in U.K.. (X/@narendramodi)

Conservative MP and leadership candidate Kemi Badenoch
| Photo Credit: Reuters

Britain’s former business and trade secretary Kemi Badenoch, who is the frontrunner to succeed Rishi Sunak as Conservative Party chief and Opposition Leader, has claimed that she blocked the India-UK free trade agreement (FTA) over demands for more visas, according to UK media reports.

The Nigerian heritage shadow minister, who is going head-to-head in an ongoing Tory membership vote with former Cabinet colleague Robert Jenrick, has indicated that one of the reasons the FTA could not be signed off by the Sunak-led Tory government was due to the Indian side expecting more concessions over the issue of migration.

“As business secretary, even as I was trying to do things to limit immigration, we had an India FTA where they kept trying to bring in migration and I said no. It’s one of the reasons why we didn’t sign it,” Badenoch reportedly told ‘The Telegraph’.

But some of her former Tory ministerial colleagues countered in ‘The Times’ that the claims are unlikely because Ms. Badenoch was pushing for a deal as she oversaw several rounds of negotiations towards an FTA expected to significantly enhance the GBP 38 billion a year bilateral trading partnership.

“Kemi just wanted to get a deal at all costs and didn’t really think that the objections that were being put forward were serious. She said they were ideologically driven, that they were impractical and weren’t conducive to good relations with the Indians,” a former Cabinet minister was quoted as saying.

“Kemi wanted a trophy to show post-Brexit benefits and there was a zeal to achieve it,” the former minister said.

“The reality was, all the bargaining power was with the Indians and they had more leverage in negotiations than we did. There was a lot more pressure on us to do all the running, and they were quite nonchalant about doing a deal. That was where the balance of power lay and we were always starting from a weaker position,” the ex-minister said.

A source close to Ms. Badenoch, however, denied claims that she was prepared to sign a deal at any cost and said that the Indian government had decided not to sign a deal with the Conservative government in the hope that it might be able to negotiate better terms under Labour.

“Kemi didn’t want to do a deal that would have changed any UK immigration rules. It’s categorically untrue, she would have never done that. India held out because they knew that under a Labour government, they would get a better deal on students and social security,” the source was quoted as saying by ‘The Times’.

“She did not put visas on the table, she did not sanction her officials to offer up access to the labour market at any point,” the source added.

Meanwhile, while reports from India indicate the FTA negotiations under the Prime Minister Keir Starmer-led Labour Party government are set to commence next month, officials in the UK are not setting any timeline for picking up after 14 rounds of negotiations.

“We remain committed to securing a trade deal with India and intend to resume talks as soon as possible,” Starmer’s foreign affairs spokesperson at 10 Downing Street told PTI this week. Ms. Badenoch and Jenrick are trading blows on various policy areas, with immigration emerging as a key focal point as they continue on the campaign trail to win votes from an estimated 140,000 Conservative members.

Sunak’s successor is scheduled to be declared on November 2, following the British Indian leader’s resignation in the wake of the party’s bruising general election defeat in July under his leadership. 

Britain’s Foreign Secretary David Lammy arrives to attend a Cabinet meeting at 10 Downing Street in London on July 23, 2024.
| Photo Credit: Reuters

In the first high-level visit by the newly-elected Labour government in the United Kingdom, U.K. Foreign Secretary David Lammy will arrive on July 24 morning for a day-long visit, where a “full reset” of ties and “economic, domestic and global security” will be at the top of the agenda, the British Foreign Office (FCDO) announced. Mr. Lammy, who is coming to Delhi on his way to Laos for ASEAN meetings, will hold bilateral talks with External Affairs Minister S. Jaishankar. He is expected to call on Prime Minister Narendra Modi and will hold meetings with National Security Adviser Ajit Doval and Commerce Minister Piyush Goyal as well before leaving for Vientiane on Thursday morning. Mr. Lammy is also expected to discuss plans for the new U.K. PM Keir Starmer and Mr. Modi to exchange visits.

 “I am traveling to India in my first month as Foreign Secretary because resetting our relationship with the Global South is a key part of how this government will reconnect Britain for our security and prosperity at home,” Mr. Lammy said in a statement ahead of his departure, calling India the “emerging superpower of the 21st century”, one of the fastest growing economies, with the world’s largest population.

With his visit, Mr. Lammy will be fulfilling a promise made at an Indian diaspora event shortly before the U.K.’s election on July 4 that he would visit India “within the month” if the Labour government was elected. He is expected to put reviving India-U.K. Free Trade Agreement (FTA) talks for an early conclusion at the top of his agenda and will also discuss the next steps in the Strategic Partnership. While most of the FTA negotiations, that began in 2022, were completed with the previous Rishi Sunak government, they were put on hold earlier this year with both countries heading to general elections. Officials said that a few issues, including the question of business mobility, tariffs and market access for certain goods still remain unresolved.

“Our Free Trade Agreement negotiations is the floor not the ceiling of our ambitions to unlock our shared potential and deliver growth, from Bengaluru to Birmingham. We have shared interests on the green transition, new technologies, economic security and global security,” Mr. Lammy said.

According to the FCDO statement, Mr. Lammy’s agenda in India includes a visit to a high-tech facility, meetings with Indian business leaders and discussions on cooperating on clean energy initiatives, as well as assisting climate resilience projects for small island states in the Global South.

Extradition cases

Apart from these bilateral issues, India is expected to discuss its concerns about anti-Indian, pro-Khalistan groups operating in the U.K., which have been raised several times in the past. Officials are expected to bring up the long-pending extradition cases against businessmen Vijay Mallya and Lalit Modi, who are wanted in India. 

Mr. Lammy may also raise the continued imprisonment of two British nationals in high-profile and controversial cases: Jagtar Singh Johal, arrested in 2017 for his alleged role in targeted killings by pro-Khalistan groups in Punjab, and Christian Michel, who India extradited from the UAE in 2017, wanted in India as the alleged middleman in the Agusta Westland corruption case. In both cases the U.K. government and UN and U.S.-based human rights agencies have questioned their continued imprisonment without a trial, as well as allegations of torture and arbitrary detention in India. Mr. Sunak had raised the Michel case with Mr. Modi on the sidelines of the G-20 summit last year. In the case of Mr. Johal, Mr. Starmer, then in Opposition, had himself written to the U.K. government demanding that the U.K. push for Mr. Johal, accusing Indian authorities of arresting the “online activist” when he visited India for his wedding, and claimed that he had been “tortured into making a confession to charges carrying the death penalty” in the letter.

New Delhi:

Commerce and Industry Minister Piyush Goyal met UK Secretary of State for Business and Trade Jonathan Reynolds in Italy and discussed plans to take forward the negotiations on the proposed free trade agreement, an official statement said on Wednesday.

The bilateral meeting took place on the sidelines of the G7 Trade Ministers’ meeting at Reggio Calabria, Italy.

The India-UK talks for the proposed free trade agreement (FTA) began in January 2022. The 14th round of talks stalled as the two nations stepped into their general election cycles.

“Mr Goyal congratulated Mr. Jonathan Reynolds on his appointment and discussed deepening bilateral economic relations. The conversation included plans to take forward the discussions on FTA between India and the UK,” the commerce ministry said.

In an FTA, two or more trading partners either significantly reduce or eliminate customs duties on the maximum number of goods traded between them. Besides, they also ease norms to promote and facilitate trade in services and investments.

There are pending issues in both goods and services sectors.

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 (banking and insurance).

The two countries are also negotiating a bilateral investment treaty (BIT). There are 26 chapters in the agreement, which include 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.

The Labour Party’s election manifesto for the recent polls also committed to clinching the deal.

Mr Goyal also holds meetings with other counterparts at the G7 Trade Ministers’ meeting.

“Discussions with Valdis Dombrovskis, Executive Vice President of the European Commission focused on promoting India-EU trade and economic collaborations, including ongoing FTA negotiations,” it said.

During his meeting with New Zealand’s Trade Minister Todd McClay, both ministers explored opportunities to enhance bilateral trade and investment ties for mutual growth.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

The Labour Party’s election manifesto for the recent polls also committed to clinching the deal. File.
| Photo Credit: AFP

With the new government taking charge in Britain, senior officials of India and the U.K. will hold the next round of talks this month for the proposed free trade agreement to resolve the pending issues and close the negotiations, an official said.

The India-U.K. talks for the proposed free trade agreement (FTA) began in January 2022. The 14th round of talks stalled as the two nations stepped into their general election cycles.

Also read | Visas not first priority for India in FTA with U.K.: High Commissioner Doraiswami

The official said the two sides are in touch, and the next round would start this month only.

Britain’s newly-elected Prime Minister Keir Starmer spoke to Prime Minister Narendra Modi on Saturday and said he stood ready to conclude an FTA that worked for both sides.

The two leaders agreed to work towards the early conclusion of a mutually beneficial India-U.K. FTA.

There are pending issues in both the goods and services sectors.

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 U.K. services in Indian markets in segments like telecommunications, legal and financial services (banking and insurance).

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

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

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

The Labour Party’s election manifesto for the recent polls also committed to clinching the deal.

The new Starmer-led government’s new Foreign Secretary David Lammy is also on the record saying that he wants to finish the job on the FTA and plans to visit India within the first month of being elected.

According to the think tank GTRI (Global Trade Research Initiative), the agreement is nearly finalised and with a few minor adjustments like curtailing the number of visas for Indian professionals, the Labour Party is likely to give its approval.

It has suggested that India should focus on two issues – Carbon Border Adjustment Measure (CBAM) and non-traditional subjects like labour, environment, gender, and intellectual property rights – in the pact.

Historically, India has resisted incorporating these topics into FTAs as they often require domestic policy changes.

The GTRI report has stated that even if the UK agrees to eliminate tariffs on sectors like textiles, Indian exports might still need to meet stringent UK sustainability requirements, and this could adversely affect Indian exports, especially in labour-intensive sectors.

A combination photo of Indian Prime Minister Narendra Modi and the newly elected British Prime Minister Keir Starmer. Photo: AP/ANI

Prime Minister Narendra Modi on July 6 spoke to newly elected British Prime Minister Keir Starmer as the two leaders agreed to work towards an early conclusion of a mutually beneficial India-U.K. free trade agreement, a statement said.

Mr. Modi congratulated him on assuming charge and a remarkable victory of his Labour Party in the election.

The statement said both the leaders recalled the historic relations between India and the U.K. and reaffirmed their commitment to deepen and advance the Comprehensive Strategic Partnership between the countries.

Appreciating the positive contributions of the Indian community in the social, economic and political development of the U.K., they agreed to continue to promote the close people-to-people ties.

Mr. Modi also extended an invitation to Mr. Starmer for an early visit to India as the two leaders agreed to remain in touch, the statement said.

In a post on X, Mr. Modi said that he congratulated Mr. Starmer on being elected as the Prime Minister of the UK. “We remain committed to deepening Comprehensive Strategic Partnership and robust India-UK economic ties for the progress and prosperity of our peoples and global good,” the post said.

British Business Secretary Kemi Badenoch.
| Photo Credit: REUTERS

A trade deal being negotiated with India is “possible” to be concluded before a general election in the country but Britain does not want to use that as a deadline, U.K. Secretary of State for Business and Trade Kemi Badenoch has said.

The Minister in charge of signing off on the free trade agreement (FTA), now in its 14th round of negotiations, pointed to India’s “protectionist economy” in comparison with the U.K.’s liberalised regime as one of the factors behind the long-drawn discussions.

Ms. Badenoch, who was speaking during a Global Trade conference at the think tank Chatham House on Thursday, stressed that she wanted to ensure a “commercially meaningful” pact as opposed to just a pre-election picture opportunity.

“India is still very protectionist where we are very, very liberalised,” claimed Ms. Badenoch.

“I am not interested in just taking a picture and moving on. It has to be something that is commercially meaningful. People need to be able to say ‘ah now I can do this’, like we had with our Australia agreement or with Japan for example,” she said, referring to FTAs with the two major economies.

On the timeline for getting to the finishing line with the talks with India, she added: “We can actually sign an agreement before the Indian election. I suspect that that is not necessarily going to be the case because I don’t want to use any election as a deadline.”

“It is possible that that will be done but I am very resistant to deadlines being set on trade negotiations because it runs down the clock. It is very possible that we can sign but I am not using it as a deadline for the work that I am carrying out basically.”

India and the U.K. have been negotiating an FTA since January 2022 to significantly enhance the GBP 36-billion bilateral trading partnership. The 13th round of talks concluded on December 15 last year, with both sides hopeful that the ongoing fourteenth round will end in an agreement.

The U.K. wants India to significantly reduce tariffs on U.K. exports such as food, cars and whisky that can currently be as high as 150%. India in turn is concerned over the fairness of rules applied to Indian workers temporarily transferred to the U.K. on business visas who have to pay national insurance, despite not being eligible for U.K. pensions or social security benefits.

In her keynote address at the trade conference, Ms. Badenoch noted: “I have to strike the right balance between embracing the import of goods from developing countries to help them grow with the need to maintain the high standards on quality and safety which the British people rightly expect. We make choices.”

“Our free trade agreements are helping us make the right choices because they are all about diversification and resilience. That is what the Indo-Pacific tilt is about, but we need to make sure that the facts are out there.”

With both India and the U.K. set for a general election this year, signing off on a trade agreement has taken on particular urgency before leaders on both sides get into campaign mode.

With the negotiations for the proposed India-UK free trade agreement (FTA) reaching its last leg, a high-level Indian official delegation is heading for London to iron out differences on remaining issues, sources said on February 20.

The chief negotiators of both countries would hold negotiations on different issues such as goods, services, and rules of origin. The visit assumes significance as last week, the Prime Minister’s Office has reviewed the progress of the talks.

Sources said that the attempt of this visit would be to close the remaining issues.

India and the UK launched the talks for a free-trade agreement (FTA) in January 2022. So far 13 rounds of talks have been completed. The 14th round started last month. Talks are also progressing on the proposed bilateral investment treaty (BIT).

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

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. The UK is seeking cuts in import duties on goods like scotch whiskey, electric vehicles, lamb meat, chocolates and certain confectionary items. The country is also looking for more opportunities for UK services in Indian markets in segments like telecommunications, legal and financial services (banking and insurance).

The bilateral trade between India and the UK increased to $20.36 billion in 2022-23 from $17.5 billion in 2021-22.