India-UK Expected to Finalize FTA Deal by October's End: Report

11 Oct, 2023

India-UK Expected to Finalize FTA Deal by October's End: Report

India-UK FTA Deal Expected by End of October: Economic Times

As per a report from the Economic Times, India and the United Kingdom are on track to finalize a proposed free-trade agreement (FTA) by the end of October 2023. British Prime Minister Rishi Sunak has reiterated his commitment to fostering closer India-UK ties, with a particular focus on the FTA, spanning various sectors.

According to official figures from the UK Department for Business and Trade (DBT), the bilateral trade between the UK and India amounted to an estimated £36 billion in 2022.

A 30-member official delegation from the UK commenced the next round of negotiations for a free trade agreement with the Indian team earlier this week. Their aim is to resolve any outstanding issues and expedite the conclusion of the talks.

Both countries recently completed the 13th round of negotiations. Commerce Secretary Sunil Barthwal led a team that visited London last week to invigorate the discussions.

The provision known as 'rules of origin' stipulates that minimal processing must occur in the FTA country, ensuring that the final manufactured product can be designated as originating in that country. This regulation prevents goods from a third country from being dumped into the Indian market by merely labeling them. It mandates a specified value addition to these products for export to India, effectively curbing the practice of dumping.

Simultaneously, an investment treaty is being negotiated separately between India and the UK.

Previously, Badenoch had reviewed the progress of the trade talks with her Indian counterpart, Commerce and Industry Minister Piyush Goyal, during her visit to India in August, which coincided with Round 12 of the FTA negotiations.

Bilateral trade between India and the UK surged from USD 17.5 billion in 2021-22 to USD 20.36 billion in 2022-23.