How close are we to the conclusion as the seventh round of India-UK free trade agreement (FTA) negotiations approaches is the question on everyone’s mind. Tensions in the bilateral relations between the two nations have increased as a result of the recent episode involving pro-Khalistan demonstrations against the Indian embassy in the UK. India is recognised for being a cautious business partner, even in the best of times. We are aware of our rising geopolitical prominence and have vested interests in safeguarding important domestic sectors. On both of these fronts, the proposed trade agreement with the UK offers an exciting opportunity, but political ideology-based negotiations must not get in the way.
A trade agreement between the two countries makes sense economically. Top exporters are both nations. and providers of goods and services imports. The UK hopes to expand its access to the Indian market through the deal for its exports of Scotch whisky, high-end vehicles, and legal services. A trade agreement will only increase market access for Indian service companies since India is the third-largest exporter of services to the UK. In addition, the two nations trade in different but related goods. The indigenous auto industry, which mostly serves middle-class consumers, is not significantly threatened by allowing luxury automobile imports to proceed more freely. In 2018, “computer programming, consultation, and related activities” was the top export category between the UK and India. This shows even more that the two nations have unique and perhaps complementary strengths within the same sector. So, with this FTA, concerns about job loss that are typical of such agreements are unlikely to come true.
If the Comprehensive Economic Partnership Agreement (CEPA) between India and the United Arab Emirates is any indicator, India is expected to negotiate a trade agreement that will reduce tariffs on important goods, subject to adherence to rules of origin. The UK can demand on laxer rules for customs procedures and less onerous rules for conducting business. Since other wealthy countries will find India to be a desirable investment location, this could have wider positive effects for India. Following the Oxford AstraZeneca and Serum Institute of India’s productive collaboration during the covid epidemic, other international corporations are eager to investigate comparable potential for cross-border cooperation. A trade agreement is likely to increase medicine sales. if New Delhi and London can agree on a mutually acceptable acknowledgment of intellectual property rights. and pharmaceutical industries of both.
