India has started trade talks with the European Union (EU) and is open to a dialogue with the United Kingdom for a free trade agreement, trade minister Piyush Goyal said on Saturday, as Asia’s third largest economy looks for new markets for its products.

Goyal said that India is open to engaging with the UK for a preferential trade agreement with the ultimate goal of a free trade agreement.

He is also in dialogue with the European Union’s trade commissioner for a deal that could start with a preferential trade agreement. He added that the ultimate goal here too would be to have a free trade agreement.

“We’re talking to the EU and I am in dialogue with the EU trade commissioner. I am looking for an early harvest deal. Open to discussions on a variety of subjects. It’s up to the UK and EU whoever picks up the gauntlet first,” Goyal said.

Negotiations for a comprehensive free trade agreement between the European Union and India were suspended in 2013 after six years of talks.

India pulled out of the Regional Comprehensive Economic Partnership last year due to fears over China’s access to its markets and is looking for new ways to boost its exports.

The country has also been raising trade barriers to block cheap imports from China and replace them with locally made goods for domestic consumption and exports.

“Apart from pharmaceuticals, we have textiles, handicrafts, leather, furniture, industrial machinery, toys are areas where India can engage with UK & EU at competitive prices,” Goyal said.

India’s economic growth has largely been driven by local consumption and successive governments have struggled to expand exports.

In the last six years Prime Minister Narendra Modi's government has been trying to push exports through various programmes like “Make in India” but with limited success.

In a PTA, two trading partners significantly reduce or eliminate import duties on a certain number of goods. In FTA, the partners do the same for maximum number of goods besides relaxing norms to promote trade in services.

Meanwhile, US President Donald Trump has for the time being ruled out a second phase trade deal with China, saying the relationship between the two countries has been severely damaged with Beijing’s handling of the coronavirus outbreak.