CNBC TV18 | 12 December 2024
India-UK free trade pact talks to resume by Jan-end, Indian government source says
India and Britain will resume their talks on a free trade agreement by the end of January, an Indian government source told Reuters on Thursday.
The countries have held start-stop talks over the agreement for two years. British Prime Minister Keir Starmer's office had said last month that talks would be restarted in the "new year".
Earlier, Starmer had stated his wish to negotiate a trade deal with India, saying that boosting trade abroad would be highly important in order to strengthen the domestic economy. Both countries aim to begin a new strategic partnership, including a trade agreement, while furthering cooperation in areas such as security, education, technology, and climate change.
Both Starmer and Prime Minister Narendra Modi underscored the importance of promptly resuming Free Trade Agreement (FTA) negotiations to address pending issues to mutual satisfaction.
PM Modi highlighted the significance of tackling the issue of economic offenders from India in the UK. They additionally agreed on the need to make progress on issues of migration and mobility. The UK has also welcomed India's plans to establish two new Consulates General in Belfast and Manchester.
India's Department of Commerce has emphasised that the negotiations will build upon prior progress as both countries aim to increase bilateral trade.
While both countries wish to ensure a fair and equitable agreement, there are multiple controversial issues that need to be resolved as preparations for the next round of talks commence. In February 2024, the Prime Minister's Office reviewed the progress of the India-UK FTA talks, which had commenced in 2022, and faced delays due to changes in UK leadership. Fourteen rounds of discussions were completed, covering matters of goods, services, investments, and intellectual property rights.
The UK is in the middle of a recession and an opposition to immigration and outsourcing. Amidst this India is seeking greater access for IT/ITeS and healthcare professionals under the FTA.
The UK, for its part, has requested duty concessions on items such as chocolates, lamb meat, electric vehicles, and scotch whisky, the latter of which is opposed by the Indian alcohol industry. Both countries are also negotiating a bilateral investment treaty.
