New Delhi: With the new government taking over in Britain, the proposed free trade agreement (FTA) between India and the UK will get a renewed push and a comprehensive pact would deliver a win-win outcome for both economies, experts said.
They said promoting services exports appears to be a priority for the UK Labor government and will look to negotiate separate sectoral agreements, such as digital or mutual recognition agreements, to promote services exports.
International trade expert and chairman of Hi-Tech Gears, Deep Kapuria, said the new UK government will seek a new strategic partnership with India, including an FTA, as well as deepen cooperation in areas such as security, education, technology and climate change.
"This is a positive indication for India, but its goal of reducing net migration may cause some hurdles in signing the FTA," he said.
Kapuria said that while it is too early to draw a definitive conclusion on the future of the India-UK FTA negotiation, it all depends on how soon the new Labor government defines its priorities and, more importantly, of promised measures to reduce net immigration.
"For India, no doubt, the UK is an important market for the export of goods and services as well as a major source of FDI. A comprehensive FTA with the UK will deliver win-win results for both economies," he added.
Ludhiana-based exporter SC Ralhan said the UK is a key export destination for Indian companies and a free and mutually beneficial trade agreement will help increase India's exports to Britain.
Ralhan added that negotiations for the deal will now receive further impetus as the new government takes over the UK.
Commerce and Industry Minister Piyush Goyal recently stated that both India and the UK are committed to the proposed FTA between the two countries.
Britain's newly elected Prime Minister Keir Starmer has said that he is willing to conclude an FTA that works for both sides.
Talks between India and the United Kingdom for the proposed FTA began in January 2022. The 14th round of talks stalled as the two nations entered their general election cycles.
In an FTA, two or more trading partners significantly reduce or eliminate customs duties on the maximum number of goods traded between them. In addition, they also relax the rules to promote and facilitate trade in services and investments.
There are pending issues in both the goods and services sectors.
Bilateral trade between India and the UK increased to $21.34 billion in 2023-24 from $20.36 billion in 2022-23.
They said promoting services exports appears to be a priority for the UK Labor government and will look to negotiate separate sectoral agreements, such as digital or mutual recognition agreements, to promote services exports.
International trade expert and chairman of Hi-Tech Gears, Deep Kapuria, said the new UK government will seek a new strategic partnership with India, including an FTA, as well as deepen cooperation in areas such as security, education, technology and climate change.
"This is a positive indication for India, but its goal of reducing net migration may cause some hurdles in signing the FTA," he said.
Kapuria said that while it is too early to draw a definitive conclusion on the future of the India-UK FTA negotiation, it all depends on how soon the new Labor government defines its priorities and, more importantly, of promised measures to reduce net immigration.
"For India, no doubt, the UK is an important market for the export of goods and services as well as a major source of FDI. A comprehensive FTA with the UK will deliver win-win results for both economies," he added.
Ludhiana-based exporter SC Ralhan said the UK is a key export destination for Indian companies and a free and mutually beneficial trade agreement will help increase India's exports to Britain.
Ralhan added that negotiations for the deal will now receive further impetus as the new government takes over the UK.
Commerce and Industry Minister Piyush Goyal recently stated that both India and the UK are committed to the proposed FTA between the two countries.
Britain's newly elected Prime Minister Keir Starmer has said that he is willing to conclude an FTA that works for both sides.
Talks between India and the United Kingdom for the proposed FTA began in January 2022. The 14th round of talks stalled as the two nations entered their general election cycles.
In an FTA, two or more trading partners significantly reduce or eliminate customs duties on the maximum number of goods traded between them. In addition, they also relax the rules to promote and facilitate trade in services and investments.
There are pending issues in both the goods and services sectors.
Bilateral trade between India and the UK increased to $21.34 billion in 2023-24 from $20.36 billion in 2022-23.
