Government sources told CNBC TV18 that UK ministers are currently being briefed on several issues ahead of the country’s budget presentation on October 30, after which India anticipates a call to resume FTA negotiations.
The India-UK trade deal negotiations were put on hold in March 2024 as both nations were preparing for general elections. Bilateral trade between India and the UK has increased from $20.36 billion in FY23 to $21.36 billion in FY24.
While both sides remain hopeful of a fair and equitable deal, several contentious issues must be addressed as they prepare for the next round of talks. In February this year, India’s Prime Minister’s Office (PMO) reviewed the progress of the talks, which began on January 13, 2022, and have faced delays due to repeated changes in UK leadership.
Fourteen rounds of discussions have concluded, with 21 out of 26 policy areas finalised by the end of 2023. The 26 chapters in the agreement cover issues such as goods, services, investments, and intellectual property rights.
Amidst a recession and opposition to immigration and outsourcing in the UK, India has sought increased access for IT/ITeS and healthcare professionals under the FTA. Meanwhile, the UK has requested duty concessions on chocolates, lamb meat, electric vehicles, and scotch whisky, the latter of which has faced opposition from the Indian alcohol industry. Both countries are also negotiating a bilateral investment treaty (BIT).
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(Edited by : Vijay Anand)