Senior officials from British Prime Minister Rishi Sunak’s team are currently in New Delhi to push forward the negotiations for an India-UK free trade agreement (FTA), as reported by The Guardian newspaper. Though there hasn’t been any official confirmation of the visit, the Indian government, led by Prime Minister Narendra Modi, is eager to finalize the FTA by the end of February to coincide with the anticipated general election campaign. The agreement holds potential political advantages for both countries, as signing it would strengthen Sunak’s position ahead of the 2024 elections and demonstrate the governing Conservatives’ commitment to expanding trade.
Negotiations for the India-UK FTA began in January last year, with the initial deadline set for Diwali 2022 by former Prime Minister Boris Johnson. However, as discussions progressed over the past year, the British government has been cautious about setting firm timelines. The deal will significantly benefit the GBP 36-billion bilateral trading partnership between the two nations.
The Department for Business and Trade (DBT) reiterated the UK government’s position that they will only sign a fair, balanced deal that is in the British people’s and economy’s best interests. India’s External Affairs Minister (EAM) S. Jaishankar expressed confidence that both sides would find common ground and emphasized progress. Talks have also taken place between Jaishankar and UK opposition leaders.
There were speculations that the FTA could have been signed off during Sunak’s visit to India in October, coinciding with a cricket match between England and India. However, internal political changes within the Conservative Party and global conflicts like the Israel-Hamas tension diverted attention from the negotiations. Both countries remain determined to agree, though no specific timeline has been given.
Regarding specific demands, India seeks improved access for its skilled professionals in sectors like IT and healthcare in the UK market and easier market access for certain goods. On the other hand, the UK aims to reduce import duties on goods such as scotch whiskey, automobiles, lamb meat, chocolates, and confectionery items. Additionally, the UK is looking for more opportunities for its services, particularly in telecommunications, legal, and financial sectors, within the Indian market.
