Discussions between Britain and India on a free trade agreement (FTA) have gained traction but further work is needed on services and tariffs to secure a deal, a British source close to the negotiations told the sources.

Britain initiated free trade discussions with India in January last year as it seeks to establish its credentials as an independent trading nation after leaving the European Union and is pursuing an Indo-Pacific shift in its foreign policy. Discussions had appeared stagnant earlier this year, with the two sides struggling to make progress in several key areas amid concern that there could be additional political complications if discussions prolong. Elections are anticipated in both countries next year.

However, the momentum has improved following the conclusion of the eleventh round of discussions this week, the source said, enabling negotiators to shift focus to more commercially sensitive topics that are likely to be some of the most challenging to resolve.

“The discussions certainly picked up pace during the last round, and gained momentum, but there is still a long way to go, such as on services or tariffs for various goods,” the source said. “It’s not about a race to the finish – it’s about driving home an ambitious deal that will benefit us both in the years and decades to come.”

After the ambitious timelines of former prime minister Boris Johnson slipped, current British leader Rishi Sunak has emphasized that his government will take time to strike the right deal. In a sign of the political impetus in the discussions, India’s trade minister Piyush Goyal and Commerce Secretary Sunil Barthwal both visited London during the round.

The Indian government has said the discussions are at a critical stage, and that ministerial engagement during the round had helped to overcome obstacles in talks. The next round is expected to commence in August.