Reynolds and Goyal are aiming to reach an agreement in principle on a proposed trade deal as soon as this weekend, setting the stage for British Prime Minister Keir Starmer and Indian Prime Minister Narendra Modi to finalize the accord later this year.
Alongside the trade agreement, the two countries are also negotiating a Bilateral Investment Treaty to strengthen economic ties.
Progress was made last month when both sides resolved a major sticking point by concluding the mobility chapter, which regulates intra-company job transfers. As part of this breakthrough, India accepted that the U.K. would make only limited modifications to its visa policies.
Earlier this week, India’s Commerce Minister Piyush Goyal departed the U.K. for stops in Oslo and Brussels. Those visits centered on negotiating exceptions to emerging carbon tax systems being introduced in the region.
Despite recent advances, several key issues remain unresolved. These include India’s strict data localization requirements on financial service providers, the official recognition of Indian territory in the free trade deal, the duration clause within the investment agreement, and India’s demand for exemptions from the U.K.’s planned carbon border tax on high-emission goods.
“We’ve made significant progress on this agenda, and it’s been a reflection of the strength of our partnership,” British Business and Trade Secretary Jonathan Reynolds said in a post following Goyal’s visit earlier in the week.
“I look forward to continuing this important work, which sends a strong message both to the U.K. and to India,” he added.
A spokesperson for the U.K. government emphasized the country’s commitment to ensuring the final deal serves the nation’s interests: “We’ve been clear that we will only agree to a deal that is fair, balanced, and ultimately benefits the British people.”
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