India and UK Reignite Vital Free Trade Agreement Discussions

08 Jul, 2024

India and UK Reignite Vital Free Trade Agreement Discussions

India and the UK are set to resume crucial Free Trade Agreement (FTA) discussions this month as leaders from both nations push for an early conclusion of the deal. Britain's new Prime Minister, Keir Starmer, and India's Prime Minister, Narendra Modi, are committed to finalizing the agreement, which addresses key issues such as market access for Indian professionals and tariff reductions on UK exports including scotch whiskey and electric vehicles.

The FTA discussions, which began in January 2022, reached a standstill due to election cycles but are now on track to advance. Both countries aim to resolve outstanding issues across 26 chapters covering goods, services, investments, and intellectual property rights. The bilateral trade between India and the UK grew to USD 21.34 billion in 2023-24, up from USD 20.36 billion the previous year. The Labour Party’s recent election manifesto supports the FTA, and the new Foreign Secretary, David Lammy, plans to visit India soon to expedite the process.

The agreement is nearly finalized, with minor adjustments needed on visas for Indian professionals and addressing topics like Carbon Border Adjustment Measures and sustainability requirements for exports.