Official Confirms Ongoing India-UK Talks for Proposed Free Trade Agreement (FTA)

06 Nov, 2023

Official Confirms Ongoing India-UK Talks for Proposed Free Trade Agreement (FTA)

Senior government officials from India and the United Kingdom are actively engaged in negotiations for the proposed Free Trade Agreement (FTA), aiming to address disparities in both goods and services sectors. According to a senior government official, discussions for the 13th round are currently underway. They emphasized that no specific deadlines have been set for concluding the talks.

The India-UK FTA talks were initiated in January 2022, with the goal of finalizing the agreement by Diwali (October 24, 2022). However, this target was missed due to political developments in the UK. The comprehensive FTA comprises 26 chapters covering goods, services, investments, and intellectual property rights. It's noteworthy that the investment treaty is being negotiated as a distinct agreement between India and the UK.

Indian industry advocates are seeking expanded access for skilled professionals from sectors like IT and healthcare in the UK market, as well as enhanced market access for a range of goods with reduced customs duties.

Conversely, the UK's interests lie in reducing import duties on various items, including scotch whiskey, automobiles, lamb meat, chocolates, and specific confectionery products. Furthermore, the UK is exploring opportunities for its services in the Indian market, particularly in telecommunications, legal services, and financial services encompassing banking and insurance.

The bilateral trade between India and the UK has demonstrated growth, increasing from USD 17.5 billion in 2021-22 to USD 20.36 billion in 2022-23. These ongoing negotiations are instrumental in strengthening economic ties between the two nations and facilitating trade in various sectors.