Published 17:14 IST, February 3rd 2025
India-UK Free Trade Agreement Talks to Resume - See Details
Finance Minister Nirmala Sitharaman on Saturday proposed to raise the foreign investment limit to 100 per cent in the insurance sector.

India and the UK are set to resume discussions on the proposed Free Trade Agreement (FTA) from February 24, according to an official source. The UK trade minister is expected to visit New Delhi soon.
The UK trade minister is likely to visit the national capital soon, the official said to PTI.
Negotiations for the FTA began in January 2022, but the 14th round of talks was stalled due to general elections in both countries. The agreement aims to enhance bilateral trade and investments by reducing or eliminating customs duties on various goods and easing trade regulations for services.
Free Trade Agreements: Key Demands
India’s Expectations: Indian industries seek better access for skilled professionals in IT and healthcare, along with zero customs duty on certain goods.
UK’s Requests: Britain wants lower import duties on scotch whisky, electric vehicles, lamb meat, chocolates, and confectionery. It is also pushing for greater access to India's telecom, legal, and financial sectors, including banking and insurance.
Free Trade Agreements: Budget 2025-26
India's Finance Minister Nirmala Sitharaman , in the Union Budget 2025-26, proposed increasing the foreign investment limit in the insurance sector from 74% to 100%. This reform may provide momentum to the FTA talks.
“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" reported PTI.
Free Trade Agreements: Bilateral Investment Treaty
India and the UK are also negotiating a Bilateral Investment Treaty (BIT). The FTA covers 26 chapters, including goods, services, investments, and intellectual property rights.
Bilateral trade between the two nations rose to $21.34 billion in 2023-24, up from $20.36 billion in 2022-23, highlighting the growing economic ties.
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Updated 17:43 IST, February 3rd 2025