India’s commerce minister heads to UK to fast-track free trade deal

Special India’s commerce minister heads to UK to fast-track free trade deal
UK Secretary of State for Business and Trade Jonathan Reynolds meets Indian Minister of Commerce and Industry Piyush Goyal for trade talks, in London, United Kingdom, on April 28, 2025. (Reuters)
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Updated 19 June 2025

India’s commerce minister heads to UK to fast-track free trade deal

India’s commerce minister heads to UK to fast-track free trade deal
  • FTA talks started in 2022 and stalled over tariffs, mobility for services professionals
  • Deal-in-principle was announced by Indian, British PMs last month

New Delhi

India’s Commerce Minister Piyush Goyal has embarked on a two-day visit to the UK to accelerate talks on a long-pending bilateral free trade agreement, his office said on Wednesday.

Launched in January 2022, the FTA negotiations between India and the UK were set to conclude the same year, but despite more than a dozen formal rounds, talks have stalled over issues like tariffs, rules of origin and mobility for services professionals.

A deal-in-principle was announced in May by Indian Prime Minister Narendra Modi and his British counterpart, Keir Starmer.

Goyal’s UK visit comes in the “backdrop of the announcement” and “aims to accelerate bilateral engagements and harness emerging opportunities,” the Ministry of Commerce and Industry said in a statement.

The minister is scheduled to meet UK Business and Trade Secretary Jonathan Reynolds to “review the progress made in the ongoing FTA negotiations and chart out a clear, time-bound road map for its finalization and implementation.”

If Goyal’s visit succeeds in producing an implementation road map with timelines, he would be able to start negotiations on a bilateral investment treaty with the UK, Anupam Manur, professor of economics at the Takshashila Institution in Bangalore, told Arab News.

“A working FTA for India is extremely important, especially in a scenario where global trade uncertainty is at an all-time high due to the trade war and tariffs imposed by President Trump,” Manur said.

“In this scenario, an FTA with the UK delivers greater certainty to India, provides market access to an important large economy, and will also act as a leverage point for trade negotiations with the US.”

India has so far signed 14 free trade agreements with 25 countries, along with several regional and preferential trade pacts covering additional nations. These include agreements with the Association of Southeast Asian Nations, Japan, South Korea, Australia and the UAE.

Talks are also ongoing with the Gulf Cooperation Council and the EU — with commitments to conclude talks in 2025.


India’s Modi to visit China for first time in 7 years as tensions with US rise

India’s Modi to visit China for first time in 7 years as tensions with US rise
Updated 06 August 2025

India’s Modi to visit China for first time in 7 years as tensions with US rise

India’s Modi to visit China for first time in 7 years as tensions with US rise
  • Modi will go to China for a summit of the multilateral Shanghai Cooperation Organization that begins on Aug. 31
  • Modi and Chinese President Xi Jinping held talks on the sidelines of a BRICS summit in Russia in October

NEW DELHI: Indian Prime Minister Narendra Modi will visit China for the first time in over seven years, a government source said on Wednesday, in a further sign of a diplomatic thaw with Beijing as tensions with the United States rise.

Modi will go to China for a summit of the multilateral Shanghai Cooperation Organization that begins on Aug. 31, the government source, with direct knowledge of the matter, told Reuters. India’s foreign ministry did not immediately respond to a request for comment.

His trip will come at a time when India’s relationship with the US faces its most serious crisis in years after President Donald Trump imposed the highest tariffs among Asian peers on goods imported from India, and has threatened an unspecified further penalty for New Delhi’s purchases of Russian oil.

Modi’s visit to the Chinese city of Tianjin for the summit of the SCO, a Eurasian political and security grouping that includes Russia, will be his first since June 2018. Subsequently, Sino-Indian ties deteriorated sharply after a military clash along their disputed Himalayan border in 2020.

Modi and Chinese President Xi Jinping held talks on the sidelines of a BRICS summit in Russia in October that led to a thaw. The giant Asian neighbors are now slowly defusing tensions that have hampered business relations and travel between the two countries.

Trump has threatened to charge an additional 10 percent tariff on imports from members — which include India — of the BRICS group of major emerging economies for “aligning themselves with Anti-American policies.”

Trump said on Wednesday his administration would decide on the penalty for buying Russian oil after the outcome of US efforts to seek a last-minute breakthrough that would bring about a ceasefire in the war in Ukraine.

Trump’s top diplomatic envoy Steve Witkoff is in Moscow, two days before the expiry of a deadline the president set for Russia to agree to peace in Ukraine or face new sanctions.

Meanwhile, India’s National Security Adviser Ajit Doval is in Russia on a scheduled visit and is expected to discuss India’s purchases of Russian oil in the wake of Trump’s pressure on India to stop buying Russian crude, according to another government source, who also did not want to be named.

Doval is likely to address India’s defense cooperation with Russia, including obtaining faster access to pending exports to India of Moscow’s S400 air defense system, and a possible visit by President Vladimir Putin to India.

Doval’s trip will be followed by Foreign Minister Subrahmanyam Jaishankar in the weeks to come.

EXPORT IMPACT
US and Indian officials told Reuters a mix of political misjudgment, missed signals and bitterness scuttled trade deal negotiations between the world’s biggest and fifth-largest economies, whose bilateral trade is worth over $190 billion.

India expects Trump’s crackdown could cost it a competitive advantage in about $64 billion worth of goods sent to the US that account for 80 percent of its total exports, four separate sources told Reuters, citing an internal government assessment.

However, the relatively low share of exports in India’s $4 trillion economy is expected to limit the direct impact on economic growth.

On Wednesday, the Reserve Bank of India left its GDP growth forecast for the current April-March financial year unchanged at 6.5 percent and held rates steady despite the tariff uncertainties.

India’s government assessment report has assumed a 10 percent penalty for buying Russian oil, which would take the total US tariff to 35 percent, the sources said.

India’s trade ministry did not immediately respond to a request for comment.

The internal assessment report is the government’s initial estimate and will change as the quantum of tariffs imposed by Trump becomes clear, all four sources said.

India exported goods estimated at around $81 billion in 2024 to the US.


Indian hotel suppliers plan to use Jeddah expo to enter Saudi market

Indian hotel suppliers plan to use Jeddah expo to enter Saudi market
Updated 06 August 2025

Indian hotel suppliers plan to use Jeddah expo to enter Saudi market

Indian hotel suppliers plan to use Jeddah expo to enter Saudi market
  • Jeddah hosts 2025 Hotel and Restaurant Supplies Expo from Dec. 9-11
  • Event will feature ‘Made in India’ display to spotlight Indian hospitality goods 

NEW DELHI: Indian hotel suppliers are planning to display their products at a supplies expo in Jeddah in December, as they seek to enter the growing Saudi hospitality market. 

The Saudi port city is hosting the 2025 Hotel and Restaurant Supplies Expo from Dec. 9-11. This will be the seventh edition of the exhibition, which connects international suppliers with hospitality players in the Kingdom. 

For the first time, the event will feature a “Made in India” showcase to highlight India’s role as a “rapidly emerging” and “go-to” sourcing hub for the global hospitality sector. 

“We are expecting high interest from Indian manufacturers to enter the Saudi market as India has the best quality with the manufacturing (of) hospitality (products),” Zeinab Ayoub, marketing manager of Jeddah-based exhibition organizer Wehdat Al-Ertikaz, told Arab News. 

Ayoub attended at the International Hospitality Expo in the Indian city of Greater Noida this week to encourage potential Indian suppliers to join the Jeddah expo in December. 

“Lots of exhibitors are interested to join the exhibition because they want to enter the Saudi market. For most of them it is the first time to enter , so this is an opportunity,” she said. 

“We have met lots of exhibitors from different categories; mattresses, F&B, horeca (hotels, restaurants, cafes) suppliers, tableware, textiles, hotel amenities.” 

Indian manufacturers see the Jeddah event as their opportunity to enter the Saudi market, especially after businesses from the Kingdom and the wider Gulf region showed interest for their products at the event in Noida. 

“If we get an opportunity to work with the Saudi people we will love to do that. We have got few clients, few enquiries from the Saudi people. There is another show that is happening in Jeddah and we are definitely going to participate in that show,” Pawan Kumar Verma, owner of 17 Nakshtra Art Works manufacturer, told Arab News. 

“Saudi is a big market, it’s a big lucrative market. Definitely we will look forward to seeing that market and we are very keen to work with the Saudi people … there are new hotels, upcoming hotels. So we will have good opportunities out there.” 

Under Vision 2030, aims to develop the tourism industry — its second largest after oil — to make the Kingdom one of the most prominent tourist destinations in the world. 

The government’s strategy appears to focus on building high-end properties, with global real estate consultancy Knight Frank expecting more than 58,000 new hotel rooms developed in the next five years. 

Yash Nagpal, owner of a mirror manufacturing company, sees the Saudi pivot to upscale properties as an opportunity for his products. 

“ has taken a lot of initiative towards tourism and all that. It is good to see a country improving in terms of tourism. It is helping us also that the hospitality industry is growing,” he told Arab News. 

“From the past few years it has been one of the main markets for Indian business exports … I would like to work with , even with the mirrors, we have a luxury feel, so (in line) with the n vibes.” 

Navneet Kamra, owner of Delhi-based Iris Hotel Craft, also sees the Saudi market as key to his business growth. 

“ is a good country, they are expanding. It’s a bigger opportunity for us. There is a huge demand in the coming years and we can fulfil,” he told Arab News. 

“Saudis are growing so we can also grow with them.” 


Spain favors European options over US-made F-35 fighter jets

Spain favors European options over US-made F-35 fighter jets
Updated 06 August 2025

Spain favors European options over US-made F-35 fighter jets

Spain favors European options over US-made F-35 fighter jets
  • The decision comes after the tension between Madrid and Washington
  • The aircraft are made by US aerospace giant Lockheed Martin

MADRID: Spain has decided against purchasing US-made F-35 fighter jets and will instead opt for European-made options, the defense ministry said Wednesday, confirming a report in El Pais newspaper.

The decision comes after the tension between Madrid and Washington over Spain’s refusal to raise defense spending to 5.0 percent of economic output, as demanded by US President Donald Trump.

El Pais reported earlier Wednesday, citing unnamed government sources, that Spanish Prime Minister Pedro Sanchez’s leftist government had shelved plans to buy the F-35 jets and would explore European alternatives.

The government had earmarked 6.25 billion euros ($7.25 billion) in its 2023 budget to buy new fighter jets. British defense publication Janes had reported that Spain was considering the purchase of up to 50 F-35 units, the newspaper said.

But government’s plan to spend the bulk of the additional 10.5 billion euros in defense spending announced for this year rules out the purchase of the F-35 jets, it added.

The aircraft are made by US aerospace giant Lockheed Martin.

A defense ministry statement said the Spanish option involved the European-made Eurofighter and fighter jets made by the European Future Combat Air System (FCAS) project, whose primary industrial partners are Dassault Aviation and Airbus.

Sanchez announced earlier this year plans to increase spending on defense to this year meet the NATO target of 2.0 percent of economic output set in 2024.

But he later refused to raise spending in the longer run to 5.0 percent, prompting Trump to threaten Spain with additional tariffs.


Kremlin calls Putin-Witkoff talks ‘constructive’ ahead of US sanctions deadline

Kremlin calls Putin-Witkoff talks ‘constructive’ ahead of US sanctions deadline
Updated 9 min 51 sec ago

Kremlin calls Putin-Witkoff talks ‘constructive’ ahead of US sanctions deadline

Kremlin calls Putin-Witkoff talks ‘constructive’ ahead of US sanctions deadline
  • Witkoff held around three hours of talks with Putin in the Kremlin

MOSCOW: Talks between Russian President Vladimir Putin and US special envoy Steve Witkoff were “useful and constructive,” Kremlin foreign policy aide Yuri Ushakov said on Wednesday.

Witkoff held around three hours of talks with Putin in the Kremlin, two days before the expiry of a deadline set by President Donald Trump for Russia to agree to peace in Ukraine or face new sanctions.

Ushakov told Russian news outlet Zvezda that the two sides discussed the conflict in Ukraine and the potential for improving US-Russia relations. He said Moscow had received certain “signals” from Trump and had sent messages in return.


Wildfire forces evacuations in Spanish tourist town

Wildfire forces evacuations in Spanish tourist town
Updated 15 min 53 sec ago

Wildfire forces evacuations in Spanish tourist town

Wildfire forces evacuations in Spanish tourist town
  • Spanish public broadcaster TVE reported that the fire had started in a camper van at a local campsite, with strong winds spreading the blaze quickly

MADRID: Firefighters battled a wildfire Wednesday near the southern Spanish tourist town of Tarifa, where more than 1,500 people had to be evacuated as shifting winds hampered efforts to control the blaze.
Although fire crews managed to secure areas near hotels and tourist accommodation, the fire remained active and uncontained, said officials.
“What concerns us most right now is the wind — whether it shifts between the west and east,” said Antonio Sanz, interior minister for Andalusia’s regional government.
The wildfire broke out Tuesday afternoon near La Pena, a wooded area close to a beach just outside Tarifa. The town of about 19,000 residents on Spain’s southernmost coast, is known for its strong winds, which draw kite- and windsurfers.
Spanish public broadcaster TVE reported that the fire had started in a camper van at a local campsite, with strong winds spreading the blaze quickly.
The fire forced the evacuation of 1,550 people from campsites, hotels, and homes, as well as about 5,000 vehicles, mostly belonging to beachgoers, said Sanz.
Emergency crews worked overnight to prevent the fire from reaching coastal resorts, but residents and tourists evacuated have not yet been allowed to return, he added.
Spain is currently experiencing a heatwave, with temperatures nearing 40 degrees Celsius in many regions.
Civil protection authorities have warned that wildfire risk remains “very high” or “extreme” across much of the country.