The trade agreement with the UK may have been under discussion for three years, but its foundations were laid 18 years ago on June 28, 2007, when India initiated talks for a Bilateral Trade and Investment Agreement.
This occurred a day after Tony Blair resigned as the Prime Minister of the UK, having laid some groundwork for the negotiations. However, it was not until Brexit and India’s choice to withdraw from RCEP that the discussions for a trade agreement with the UK truly commenced.
By opting out of the China-led Regional Comprehensive Economic Partnership, the government increased its engagement with developed nations—from the UK and EU to Australia—aiming to create new markets for Indian products and services. This necessitated the revival of discussions that had been sidelined, as the Modi government was hesitant to sign Free Trade Agreements during its initial term.
The UK agreement seemed to progress smoothly while Boris Johnson was in office at 10 Downing Street. In April 2022, three months after negotiations commenced, Johnson established a Diwali deadline. However, less than three months later, he resigned, and the agreement was once again put on hold as the UK faced uncertainty.
Numerous members of Rishi Sunak’s cabinet publicly voiced their concerns regarding visa concessions, although the discussions were focused on business visas.
Ultimately, it was Keir Starmer who chose to proceed with the agreement at a time when pressure from the US was increasing. It took three years and 14 rounds of negotiations for the agreement to be finalized, mere hours before the launch of Operation Sindoor.
