"The UK and India will today (Thursday, 13 January) launch negotiations on an ambitious Free Trade Agreement at an event in New Delhi", the UK government said in a statement.
If signed, the free trade agreement will eliminate barriers to doing business and trading between the two countries.
"A trade deal with India's booming economy offers huge benefits for British businesses, workers, and consumers. As we take our historic partnership with India to the next level, the UK's independent trade policy is creating jobs, increasing wages, and driving innovation across the country", UK Prime Minister Boris Johnson said.
The UK completed its withdrawal from the European Union in 2020 and is now re-shaping its trade relations with other countries.