The much awaited Free Trade Agreement (FTA) between India and the United Kingdom is likely to be concluded ‘soon’ , official sources aware of the matter have said.
The observations come after defence minister Rajnath Singh, who is on a two days visit to the Kingdom ,met Prime Minister Rishi Sunak at his 10 Downing Street, London residence.
Sources told the Daily Guardian that ‘positive’ developments have emerged in the meeting between the two leaders.
It is pertinent to mention that the 14th round of discussions to resolve the difference over FTA finalization between Indian and UK officials, which is likely to be the final such exercise, is underway in Delhi since Wednesday.
Rajnath Singh visit to U.K is the first by an India Defence Minister in 22 years which underscores the gravity of the talks that have likely taken place between the leaders from these two nations. Apart from Sunak and other leaders, Singh also met UK’s Foreign Minister Lord David Cameron.
It is pertinent to mention that both India and Britain will see general elections this year and hence both the parties are trying to resolve the differences and arrive at a consensus keeping in view the economic benefits that the FTA will provide for voters in both the countries.
The issues that remain to be resolved revolve around goods, services, and investment and duty cuts on electric vehicles, whiskey, and the movement of professionals, something that is being resisted from the Indian stakeholders.
If the FTA is agreed upon, this will be India’s first FTA with a member of the G-7 club.
Sunak, when he had visited Delhi for the G-20 meet, had met Indian Prime Minister Narendra Modi on 9 September and had a detailed discussion where he emphasised how ‘excited he was to deliver a landmark trade deal which benefits businesses and workers in both countries and increases the trade between both the countries’.
Soon after , the 13th round of negotiations for the proposed pact was held between September 18 and December 15.
The negotiations between the two countries to sign the FTA had started on 17 January 2022 with an initial deadline of October 2022.
India is the UK’s 12th largest trading partner accounting for 2.1% of total UK trade. As per the latest data released by the UK’s department for business and trader, the total value of trade in goods and services between the UK and India was £38.3 billion at the end 2023, an increase of 24.1% or £7.4 billion from the end of 2022.
Of this £38.3 billion, the total UK exports to India amounted to £16.0 billion (an increase of 24.2% or £3.1 billion from the end of 2022) while the total UK imports from India amounted to £22.3 billion (an increase of 23.9% or £4.3 billion from the end of 2022).