UK and India Make Strides Toward Imminent Free Trade Agreement: Report Suggest

UK and India Make Strides Toward Imminent Free Trade Agreement: Report Suggest

Ira Singh
9 Aug’23

The United Kingdom and India are reportedly edging closer to finalizing a historic free trade agreement that could pave the way for increased economic cooperation and trade between the two nations. Sources close to the negotiations suggest that both countries have made substantial progress in recent rounds of talks, indicating a strong willingness to strengthen their bilateral ties.The proposed free trade agreement between India and the UK is inching closer to realisation, reports said on Sunday.

In a bid to protect domestic interests, India has excluded data-related issues and dairy sector concessions from the proposed India-UK free trade agreement. However, the negotiations have taken an intriguing turn as India is considering duty concessions on automobiles and certain confectionery items.

This move aims to strike a balance between safeguarding domestic industries and promoting trade ties.

Negotiations have got a significant boost following the recent visit of Commerce and Industry Minister Piyush Goyal and Commerce Secretary Sunil Barthwal to London, where they held crucial meetings with various stakeholders, including senior British officials.

Under free trade agreements, two trading partners drastically decrease or remove customs tariffs on the maximum number of items exchanged between them, in addition to relaxing rules to encourage trade in services and investments.

UK corporations have expressed worries about India’s data localization regulations. Another official stated that India and the United Kingdom are extremely close to completing discussions for a potential free trade agreement, with both parties trying to iron out disagreements on subjects such as investment treaties, intellectual property rights (IPRs), and rules of origin.

As negotiations continue, stakeholders and observers eagerly await an official announcement from both governments regarding the progress and outcome of the talks. The potential agreement could mark a significant milestone in the evolving relationship between the UK and India, opening up new avenues for cooperation and trade in the years ahead.