In a noteworthy development, negotiations between India and the United Kingdom for a comprehensive free trade agreement (FTA) have progressed significantly, with both sides dedicated to resolving lingering differences. Commerce Secretary Sunil Barthwal, in a statement, acknowledged the ongoing negotiations and the challenges that still require resolution, though specific details were not provided.
Secretary Barthwal recently returned from the UK, where he engaged in discussions with his British counterparts. Concurrently, a team of UK negotiators is currently in New Delhi to continue the 13th round of talks initiated on September 18.
The proposed FTA, which has been under negotiation since January 2022, encompasses 26 chapters across various policy domains. The majority of these chapters have either been concluded or are in advanced stages of negotiation.
While less contentious issues have been settled, discussions are ongoing regarding matters of particular interest to India, including enhanced access for skilled professionals in sectors such as IT and healthcare to the UK market, along with market access for certain goods with reduced or zero customs duties.
On the flip side, the UK is advocating for a substantial reduction in import duties for items like Scotch whiskey, automobiles, lamb meat, chocolates, and specific confectionery products. Furthermore, the UK is seeking expanded opportunities for its services in India, especially in segments like telecommunications, legal, and financial services (banking and insurance).
Should these negotiations reach a successful conclusion, this FTA will mark India’s first trade agreement with a developed nation, potentially setting a precedent for similar pacts with entities like the European Union (EU).
In parallel, a British delegation is also engaged in discussions with the Ministry of Finance to negotiate a Bilateral Investment Treaty, which will accompany the FTA.
The UK holds a significant position as a trade and investment partner for India. Bilateral trade between the two countries has seen growth, increasing to $20.36 billion in the fiscal year 2022-23, up from $17.5 billion in 2021-22.
Meanwhile, discussions on an FTA with the European Union are set to continue with the sixth round of negotiations scheduled to take place in Brussels starting this Monday. The fifth round, which occurred in June, involved discussions covering 20 policy areas.
