India plans to resume free trade agreement talks with the UK, designated as a “priority country,” in 2025. This agreement could quadruple Indian exports by 2030 and support India’s $1 trillion merchandise export objective. Trade growth between both nations reflects a strengthening partnership despite previous negotiations being interrupted due to political changes in the UK.
The Indian government has assigned “priority country” status to the United Kingdom and intends to resume discussions on a free trade agreement (FTA) in 2025. This follows a recent meeting between Indian Prime Minister Narendra Modi and UK Prime Minister Sir Keir Starmer during the G-20 Summit in Brazil. The FTA has the potential to quadruple Indian exports to the UK by the year 2030, thereby contributing significantly to India’s ambitious goal of achieving $1 trillion in merchandise exports by FY30. Negotiations for the FTA, which were previously paused, had progressed to the 14th round before their suspension in May. Officials noted that the UK’s desire for an FTA stems from the need for a stable supply of food and goods, particularly in light of current geopolitical uncertainties. Preliminary trade figures reflect the growing trade relationship, with UK exports to India rising by over 30% in the first half of 2024-25 compared to the preceding year. India’s exports have also shown promising growth, increasing by 12.38% in the same period. The trade partnership primarily involves the exchange of petroleum products, machinery, and pharmaceuticals. However, negotiations have faced challenges due to political shifts in the UK, with various unresolved issues, including import duties and business visa policies. The upcoming FTA discussions will focus on bridging the existing gaps while building on the prior progress. The finalization of the meeting dates will occur through diplomatic channels, and both nations are optimistic about reaching a beneficial agreement soon. The commerce ministry emphasized the significance of a balanced and mutually advantageous FTA in fostering deeper bilateral ties between India and the UK.
India and the United Kingdom have been engaged in trade negotiations with the aim of establishing a robust free trade agreement. This FTA is expected to greatly enhance bilateral trade and exports, reflecting the growing economic ties between both nations. The previous negotiations saw substantial progress before experiencing interruptions due to changes in the UK government and geopolitical challenges. Key concerns include import tariffs and regulations related to trade and mobility. As both countries navigate these issues, the goal remains a comprehensive agreement that boosts trade and promotes economic stability.
In summary, India is set to prioritize its trade discussions with the UK as they plan to resume FTA negotiations in 2025. This initiative aims to foster economic growth, enhance exports, and navigate geopolitical challenges. The ongoing collaboration underscores the importance of a mutually beneficial trade relationship, with both nations expressing optimism about a favorable resolution to outstanding issues. With developments in trade data indicating a positive trend, both countries are poised for deeper engagement in the coming years.
Original Source: www.hindustantimes.com
