India and the United Kingdom are set to hold the next round of negotiations on a proposed free trade agreement (FTA) in January, aiming to address unresolved issues and finalise the long awaited deal, a senior Indian official said.

Talks for the FTA began in January 2022 but stalled after 13 rounds, as both nations entered their respective general election cycles. An official statement in November indicated that dates for discussions in early 2025 would be coordinated through diplomatic channels.

Negotiations will build on previous progress and aim to bridge remaining gaps to expedite the agreement, the official said, adding that the next round is likely to commence at the end of January.

Indian industries are pushing for enhanced access for skilled professionals in sectors such as IT and healthcare in the UK market, as well as zero customs duties on several goods.

The UK, meanwhile, is seeking significant tariff reductions on exports such as Scotch whisky, electric vehicles, lamb meat, chocolates, and certain confectionery products.

Britain is also advocating for increased access for its service sectors, including telecommunications, legal, and financial services like banking and insurance, in the Indian market.

In parallel, both nations are negotiating a bilateral investment treaty (BIT) to boost investment flows.

The FTA includes 26 chapters covering trade in goods, services, investments, and intellectual property rights.

Trade between India and the UK grew to $21.34 billion in the 2023-24 fiscal year, up from $20.36 billion in 2022-23, according to official data.