India plans to revamp its current Bilateral Investment Treaty (BIT) to encourage foreign investment, as announced in the Union Budget for 2025-26.

Goyal engaged with industry leaders during his visit, including discussions on opportunities in India's fintech sector and the importance of international partnerships for innovation.

The ongoing negotiations are critical for both nations, as they seek to reduce trade barriers and establish a stronger trade relationship, particularly in light of rising tariffs.

India's Commerce Minister Piyush Goyal is currently on a five-day visit to London, Oslo, and Brussels, aiming to strengthen trade and investment relations with the UK, Norway, and the European Union.

During his visit, Goyal met with UK Secretary of State for Business and Trade Jonathan Reynolds to advance the long-pending Free Trade Agreement (FTA) negotiations between India and the UK.

The FTA discussions have entered their final stages after 14 rounds of negotiations since January 2022, with key sticking points including rules of origin and short-term service visas.

The urgency to finalize the trade deal is heightened by the United States' plans to impose country-specific reciprocal tariffs, currently on hold until July 2025.

The UK has requested India to lower high tariffs on cars and alcoholic beverages, which currently stand at 100% and 150%, respectively.

Negotiations are also focused on India's request for greater visa access for skilled professionals and the UK's desire for market access for dairy products.

Both countries are committed to strengthening their economic relationship amid global trade challenges, particularly due to anticipated US tariff hikes.

The discussions aim to finalize the FTA, with a focus on various chapters, including goods, services, investments, and intellectual property rights.

This visit follows Finance Minister Nirmala Sitharaman's recent trip to the UK, which also aimed to reinforce India's economic influence and advance BIT negotiations.