UK FTA Likely Next Month, $18B Services Surplus: Piyush Goyal Signals ‘New Era’ for Indian Trade

India is aiming to sign a free trade agreement with the United Kingdom as early as next month, Commerce Minister Piyush Goyal said on Tuesday, as New Delhi seeks to diversify its export markets and leverage a growing surplus in services.

Speaking in the lower house of Parliament, Goyal said India’s trade profile has shifted significantly over the last three years, moving beyond a traditional reliance on merchandise exports.

"We have to keep in mind, our country is not just a merchandise exporter," Goyal said during a legislative session. "India has achieved greater growth in the past three years in both merchandise and services."

He projected that the country’s services surplus would reach between $17 billion and $18 billion, hence providing a buffer against global volatility. This comes amid broader concerns over global supply chains, specifically disruptions in the Strait of Hormuz, which have pressured energy prices. However, Goyal noted that internal data for March showed a "positive graph" by the end of the first week. Hence, suggesting that trade in goods and services has remained resilient.

"In the past month, our trade goods and services have not gone down," Goyal said.

The proposed deal with Britain is expected to open new markets for Indian firms. Negotiations for the UK-India FTA have been ongoing for several rounds. It's focusing on reducing tariffs on Scotch whisky and automobiles while seeking better access for Indian service professionals.

"New markets will open up," Goyal said. "A new era is beginning for Indian markets."

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