India plans to resume Free Trade Agreement (FTA) talks with the UK in early 2025, following high-level discussions between Prime Ministers Modi and Starmer. The agreement aims to quadruple Indian exports to the UK by 2030, in light of the UK’s need for reliable food and product supplies amidst geopolitical tensions. The resumption comes after initial negotiations were stalled due to political changes in the UK, with persistent issues still needing resolution.
India is set to resume Free Trade Agreement (FTA) negotiations with the United Kingdom, designated as a priority country, in early 2025. This decision follows a positive dialogue between Prime Minister Narendra Modi and UK Prime Minister Sir Keir Starmer during the G-20 Summit in Rio de Janeiro, Brazil. The FTA aims to significantly boost Indian exports to the UK, potentially quadrupling them by 2030, thereby aiding India in achieving its ambitious $1 trillion merchandise export target by the fiscal year 2030. The UK perceives an FTA with India as crucial for ensuring a stable supply of essential goods, including food, amid prevailing geopolitical uncertainties, which can help mitigate inflation impacts. Recent trade data indicates a substantial 30.5% increase in UK exports to India, raising the figure to $4.22 billion in the first half of 2024-25, contrasted with $3.23 billion during the same timeframe in the previous fiscal year. Likewise, India’s exports to the UK have also grown by 12.38% to $7.32 billion. India’s trade with the UK has been steadily expanding, reflecting considerable opportunities for enhanced collaboration. The discussions surrounding the FTA began in early 2022 but faced interruptions due to political changes in the UK that stalled negotiations. Although talks resumed under Prime Minister Rishi Sunak, unresolved issues such as import tariff reductions for vehicles and scotch whisky, along with business visa facilitation, remain obstacles to a final agreement.
The India-UK FTA discussions are aimed at fostering deeper economic ties between two major global economies, especially in light of changing geopolitical landscapes. The initial negotiations commenced in January 2022 but encountered delays due to shifts in the political leadership in the UK, which complicated the agreement’s progress. With a renewed commitment to finalize the FTA by 2025, both countries are focused on bridging gaps and addressing outstanding issues to enhance bilateral trade and investment opportunities.
The resumption of FTA negotiations between India and the UK marks a significant step toward solidifying their economic relationship. With both nations eager to address trade barriers and bolster exports, there lies considerable potential for mutual benefits. The commitment to finalize talks by early 2025 is a promising development, signaling optimism for a fruitful economic partnership that could yield positive impacts for both countries.
Original Source: www.hindustantimes.com
