India and Great Britain will aim more than bilateral trade in two decades, the Indian Minister of Commerce said Piyush Goyal on Monday, while the two countries have resumed commercial talks under the shadow of the President’s pricing threats Donald Trump.
Countries would accelerate talks on a proposed trade agreement, including a free trade pact and an investment treaty, said Goyal at a joint press conference with the British business and business secretary Jonathan Reynolds.
The ministers did not answer questions directly on the question of whether their talks were affected by Trump’s order to raise prices and take other measures to counter what he considers obstacles to property Americans.
Their joint declaration said that the resumption of commercial negotiations had emerged from the discussions between their Prime Ministers on the sidelines of the G20 summit in November 2024 – an event that took place with the inauguration of Trump.
“It will be a revolutionary free trade agreement,” said Goyal, adding that this could stimulate the trade in goods with Great Britain two to three times in a decade, without giving detailed calendar.
The bilateral trade in goods and services between India and Great Britain, currently the fifth and sixth economies in the world respectively, affected 41 billion pounds sterling (52 billion US dollars) during the 12 months until September 2024, according to estimates by the British government.
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Trade negotiations were interrupted in March of last year before the elections in the two countries.
After years of delays, India has signed trade agreements with several countries, including water and Australia in 2022, and a pact last year with the European Free -Frade Association – A group made up of Switzerland, Norway, Iceland and Liechtenstein.
Earlier this month, India reduced prices on Bourbon whiskey to 100% 150% after Trump criticized “unfair” samples from the South Asian market.
The main obstacles include abrupt import duties from India on British whiskey and its request to facilitate companies and Indian professionals to obtain visas to work in Britain.
“There is always sensitivities in the commercial negotiations that you must respect,” said Reynolds, citing the concerns of India concerning Great Britain’s demands for India to lower agricultural prices and opens its market to dairy products.
Rejecting certain media reports, Goyal said immigration would not be part of the discussions in the commercial pact.
Reynolds said his government was faced with immigration as a separate problem outside of commercial talks.
India-UK trade discussions have been the first since the Labor Party came to power in Great Britain in July from last year. Reynolds said that the conclusion of an agreement is an “top priority” for his government.
British investment minister Poppy Gustafsson should also meet investors in the financial capital in Mumbai and the Hub Bengaluru to urge Indian companies to invest.
The two countries would also discuss a separate Treaty on Social Security, in addition to the commercial and investment pact, said Goyal.