India and the UK on Saturday reviewed the progress of negotiations on the proposed free trade agreement (FTA), talks for which have reached the final stage.

The progress was reviewed by commerce and industry minister Piyush Goyal and UK secretary of state for business and trade Kemi Badenoch in Osaka, Japan. Both ministers are in Japan for the Group of Seven (G7) trade ministers meeting in Osaka.

“Discussed the progress of India-UK free trade agreement negotiations with UK secretary of state for business and trade Kemi Badenoch,” Goyal said on social media platform X.

Negotiations between senior officials of India and the UK are on to bridge differences on issues such as rules of origin and services sector, with an aim to conclude the talks for the proposed FTA at the earliest.

India and Britain launched the talks for a trade agreement in January 2022, with an aim to conclude them by Diwali last year (October 24, 2022), but they missed the deadline because of political developments in the UK.

There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights. An investment treaty is also being negotiated as a separate agreement between India and the UK.

These investment treaties help in promoting and protecting investments in each other’s country. The main point of contention in this pact is the mechanism for settlement of disputes.

Indian industry is demanding greater access for its skilled professionals from sectors such as IT and healthcare in the UK market, besides market access for several goods at nil customs duty.

The UK is seeking a significant cut in import duties on goods such as Scotch whiskey, automobiles, lamb meat, chocolates and certain confectionery items. Britain is also looking for more opportunities for UK services in Indian markets in segments such as telecommunications, legal and financial services.

Bilateral trade between India and the UK increased to $20.36 billion in 2022-23 from $17.5 billion in 2021-22.