In the unexpected cum historic move, the long-awaited Free Trade Agreement (FTA) between India and the United Kingdom has been closed over Ice Cream in Hyde Park in London. This iconic decision has been made after years of negotiation on several terms.
Surprisingly, the thing didn’t go the right way in various discussions. However, the FTA is closed between these nations during a walk. In this article, we will discuss how this historic decision was made. Moreover, we will highlight how FTA will impact various fields of both countries.
The Sweet Conclusion of the India-UK FTA
On May 5, 2025, UK Business and Trade Secretary Jonathan Reynolds invited Piyush Goyal for a walk in Hyde Park. However, the seemingly ordinary walk becomes a pivotal moment for the India-UK FTA.
During this week’s UK-India week at the India Global Forum (IGF) in London, Goyal discussed the details of the unconventional yet impactful decision. He said, “When I get an invitation via message from Secretary Reynold for a walk in Hyde Park. He knows that I am very fond of walking there. I had never thought that we would get to talk about the issues that were left for us to be able to finalize the FTA and Double Contribution Convention (DCC) agreement.”
He further said, “We were able to close the significance in a very practical manner during the walk, which was fair for both nations and was a balanced agreement. It will lead to shared happiness for business and people of both countries.” Moreover, he mentioned that Reynolds also offered him a chocolate ice cream, but I owed him one.
The discussions on the FTA began in January 2022, and the final trade agreement is expected to double bilateral trade to $120 billion in 2030. It covers good, service, investment, and the DCC agreement. Moreover, the DCC agreement will prevent Indians living in the UK from paying a duplicate security test in both nations.
Strategic Significance of the India-UK FTA
The FTA between India and the UK can come out as a landmark deal. Moreover, this should strengthen trade relations between the two global economic powerhouses, India and the UK. India might view this as furthering its aim of expanding international trade relations. However, the UK could see it as a win in its post-Brexit trade strategy.
This agreement is expected to reduce tariffs on many goods and enhance service sector cooperation. Moreover, it could also simplify the market access for businesses across both countries.
Piyush Goyal will also meet UK Chancellor Rachel Reeves, Culture Secretary Lisa Nandy, and Secretary Reynolds for a high-level discussion in a two-day visit. Moreover, he is also scheduled to meet with policymakers, business leaders, investors, etc. However, he will perform high-level discussions with a focus on empowering the scientific and technological cooperation.
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What to expect from the India-UK FTA agreement?
The FTA between India and the UK is expected to give many perks to both countries. Goyal said that it will attract stability to the economic conditions between the two nations. Moreover, it will provide businesspeople with the confidence that the tariff will remain constant. There is a possibility that the business climate will be predictable due to the friendship between both nations. Therefore, the agreement will motivate two-way investment and promote trade in goods and services.
Furthermore, Piyush Goyal shared that it will encourage collaboration and joint ventures where you are not only looking at each other, but looking to capture the global market.
