India and the UK Likely to Finalize Free Trade Agreement by Month's End

Via Syndicted Feed

India and the UK Likely to Finalize Free Trade Agreement by Month's End

According to The Economic Times, India and the United Kingdom will likely complete a proposed free-trade agreement (FTA) by the end of October 2023. This potential FTA marks a significant step in bolstering trade relations between the two nations.

British Prime Minister Rishi Sunak has consistently emphasized his dedication to enhancing India-UK ties in various sectors, focusing on a comprehensive FTA. This commitment underscores the mutual interest in fostering a robust economic partnership.

Official statistics from the UK Department for Business and Trade (DBT) indicate that the bilateral trade between the UK and India amounted to an estimated £36 billion in 2022. This figure highlights the economic stakes involved in these negotiations and the potential benefits for both countries.

In pursuit of this agreement, a 30-member official delegation from the UK recently commenced the next round of negotiations with their Indian counterparts. The primary objective of these talks is to address any remaining issues and facilitate the conclusion of the negotiations. The 13th round of negotiations had just ended, and Sunil Barthwal, the secretary of commerce, led a delegation to London to rekindle the dialogue.

A crucial aspect of the proposed FTA is the inclusion of 'rules of origin.' These provisions dictate that minimal processing of goods must occur within the FTA country to qualify as products originating from that nation. This measure is designed to prevent third-party countries from flooding the Indian market with goods labeled as originating from the FTA partner without sufficient value addition.

In addition to the FTA negotiations, an investment treaty is being negotiated separately between India and the UK. This reflects the multifaceted approach both countries are taking to strengthen economic ties.

Discussions between India's Commerce and Industry Minister Piyush Goyal and UK Member of Parliament Kemi Badenoch have highlighted the progress in trade negotiations. These interactions occurred during Badenoch's visit to India in August, coinciding with the 12th round of FTA negotiations.

The trade relationship between India and the UK has seen substantial growth, with bilateral trade increasing from USD 17.5 billion in 2021–22 to USD 20.36 billion in 2022–23. This surge underscores the expanding economic collaboration between the two nations.

As both countries work towards finalizing the FTA, these negotiations hold the potential to create new opportunities and strengthen economic cooperation, marking a significant milestone in their evolving partnership. 

Rishi Sunak's Possible India Visit: FTA Discussion & Cricket Match


With rising hopes for a quick conclusion of the India-UK free trade agreement, both countries are exploring a visit by Prime Minister Rishi Sunak this month. Sunak and Modi initially met on the sidelines of the G20 summit, where Modi extended an invitation for Sunak to revisit India at an early opportunity.

During their previous meeting, the two leaders assessed the progress of the FTA talks. They expressed optimism that any remaining issues could be promptly addressed, ultimately leading to the conclusion of a balanced, mutually beneficial, and forward-looking free trade agreement.

Modi's invitation to Sunak for a second visit is intended to facilitate more in-depth discussions on the FTA and other bilateral matters. Diplomatic sources have indicated that both parties have tentatively settled on October 28 as a potential date for this visit.

Should Sunak decide to visit, there's a chance he may also journey to Lucknow to attend the India-England cricket match scheduled for October 29. It's important to note that while there is no final confirmation at this point, there is hope for further progress in the FTA negotiations before the visit takes place. Nevertheless, it has been clarified that the visit will not be contingent upon completing FTA negotiations.

IndraStra Global Staff has not edited this story, which is auto-generated from a syndicated feed.

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IndraStra Global: India and the UK Likely to Finalize Free Trade Agreement by Month's End
India and the UK Likely to Finalize Free Trade Agreement by Month's End
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