India and the UK will resume Free Trade Agreement talks in early 2025, following discussions between Prime Ministers Narendra Modi and Keir Starmer at the G20 Summit. Key focus areas include addressing tariffs and visa regulations while pursuing extradition of economic offenders. The initiative aims to strengthen economic ties and foster cooperation in various sectors including technology and green energy, reflecting both nations’ priorities for mutually beneficial relations.
India and the United Kingdom are set to resume their Free Trade Agreement (FTA) negotiations in early 2025. This decision was made during a meeting between Prime Minister Narendra Modi and UK Prime Minister Keir Starmer at the G20 Summit in Rio de Janeiro, where both leaders emphasized the significance of rekindling discussions on trade to further their comprehensive strategic partnership. Following a period of inactivity due to elections in both nations, the resumption of talks is aimed at addressing outstanding issues and finalizing a balanced trade agreement. At the summit, Modi brought up the necessity of extraditing economic offenders who are wanted in India, while also announcing the establishment of two new Indian consulates in Belfast and Manchester. In a subsequent post, he reflected on the meeting as highly productive, reiterating India’s commitment to foster cooperation across various sectors such as technology, green energy, security, and cultural exchanges. Starmer echoed this sentiment, highlighting that the new trade deal is critical for enhancing job growth and economic prosperity in the UK. The discussions about the FTA commenced in January 2022, reaching their 14th round in January 2023 before pausing due to electoral processes in both countries. Both Prime Ministers expressed confidence in their teams to address unresolved issues, which include the UK’s demands for lower tariffs on automobiles and the facilitation of easier visa norms for Indian professionals. Modi pointed to the urgency of economic offender cases, including high-profile fugitives like Vijay Mallya and Nirav Modi, that remain unresolved in the UK. The two leaders also discussed the India-UK Technology Security Initiative launched in July, aimed at boosting collaboration in critical sectors such as telecommunications, semiconductors, and artificial intelligence. Notably, India has emerged as the UK’s 11th largest trading partner, having seen a significant uptick in trade volume in recent months, illustrating the potential benefits of the FTA once finalized.
The India-UK Free Trade Agreement negotiations began in January 2022, with a total of 14 rounds of discussions conducted before a pause due to general elections in both countries. Prime Minister Modi’s recent re-election and the establishment of a new Labour government under Prime Minister Starmer marked a pivotal moment for these negotiations to resume. The agreement aims to create a mutually beneficial trade relationship by addressing tariffs, regulatory standards, and enhancing economic ties while also considering issues like visa regulations and the extradition of India’s economic fugitives.
Resuming the FTA negotiations between India and the United Kingdom marks a critical step in strengthening bilateral trade relations amidst ongoing global economic challenges. Both leaders have identified key areas for cooperation, including technology and security. With the potential for significant economic benefits on both sides, the forthcoming discussions in 2025 will be essential in creating a framework that addresses outstanding issues and paves the way for a comprehensive trade deal.
Original Source: www.hindustantimes.com
