UK FTA EV Access & Business Mobility Relaxation Contention Clarified

18 Mar, 2024

UK FTA EV Access & Business Mobility Relaxation Contention Clarified

India and the UK find themselves at an impasse during free trade discussions, primarily due to disagreements over electric vehicle (EV) access and business visas. Despite 14 rounds of negotiations since January 2022, both sides remain entrenched in their positions. One of the major sticking points revolves around India's reluctance to grant unrestricted entry to UK EVs, a demand crucial to the negotiations. Additionally, India seeks relaxed business visa norms, which the UK opposes.

Talks have revealed India's willingness to consider duty concessions in the automobile sector, provided the UK reciprocates. However, India is cautious about fully opening its EV market to protect domestic manufacturing interests. Nonetheless, recent discussions between Prime Minister Narendra Modi and UK counterpart Rishi Sunak have shown promise, albeit resolving differences may take time. India's new EV policy, announced recently, offers limited concessions contingent upon substantial investments from foreign automakers.

As negotiations continue, both countries strive for a mutually beneficial agreement, recognizing the significance of respecting each other's sensitivities and strengths. However, the timing of a finalized deal remains uncertain, with expectations leaning towards post-general elections in India.