India and the United Kingdom are on the verge of finalising a long-anticipated free trade agreement (FTA) just weeks after negotiations resumed, according to a senior Indian diplomat. Talks had been stalled since 2024 due to general elections in both countries but recently gained momentum with renewed discussions.

Progress Resumes After a Year-Long Pause

Nidhi Tripathi, Economic Minister at India’s High Commission in London, expressed optimism about the agreement’s imminent completion. Speaking at the British Chambers of Commerce trade conference on Thursday, she stated, “We are very close, and this agreement is going to be a game-changer for both of us. This will bring a lot of predictability and certainty for our services suppliers, and we are very hopeful.”

Tripathi’s statement signals a breakthrough in negotiations, which had been ongoing since January 2022. Over the past three years, both nations have conducted more than a dozen rounds of talks, though multiple self-imposed deadlines were missed. Former UK Prime Ministers Boris Johnson and Rishi Sunak had aimed to conclude the deal before the UK’s general election in July 2024, but progress remained sluggish.

Labour Government Pushes for a Deal

The newly elected Labour government in the UK has actively revived the discussions. Jonathan Reynolds, the UK’s Business and Trade Secretary, travelled to India last month to restart negotiations. His visit marked a fresh phase in the discussions, with one UK official involved in the process noting that the progress felt more positive than at any point in the past. The official also highlighted that Reynolds’ strong rapport with his Indian counterpart, Commerce Minister Piyush Goyal, played a crucial role in advancing the negotiations.

Despite growing optimism, the UK’s Department for Business and Trade has refrained from commenting on the progress of the deal. However, officials from both sides suggest that an agreement is within reach, potentially reshaping trade relations between the two nations.

A Deal That Could Transform Trade Ties

India and the UK have long sought an FTA that would enhance economic cooperation and strengthen bilateral trade. If finalised, the agreement is expected to provide significant advantages for businesses and service providers in both countries. It would offer greater market access, regulatory stability, and economic opportunities across multiple sectors.

Over the years, India and the UK have built strong economic ties, and this trade deal is expected to further cement their partnership. The agreement will likely boost investments, streamline trade policies, and foster economic growth in both nations.

As discussions near completion, stakeholders remain hopeful that the long-awaited FTA will soon become a reality, ushering in a new era of trade and economic collaboration between India and the UK.