New Delhi, With the new government taking over in Britain, senior officials from India and the United Kingdom will hold the next round of talks this month on the proposed free trade agreement to resolve outstanding issues and close negotiations, said a official.
Talks between India and the United Kingdom for the proposed free trade agreement (FTA) began in January 2022. The 14th round of talks stalled as the two nations entered their general election cycles.
The official said the two sides are in contact and the next round would begin only this month.
Britain's newly elected Prime Minister Keir Starmer spoke to Prime Minister Narendra Modi on Saturday and said he was willing to conclude an FTA that works for both sides.
The two leaders agreed to work towards the early conclusion of a mutually beneficial FTA between India and the United Kingdom.
There are pending issues in both the goods and services sectors.
The Indian industry is demanding greater access to the UK market for its skilled professionals in sectors such as IT and healthcare, along with market access for various products without customs duty.
On the other hand, the United Kingdom is seeking a significant reduction in import duties on goods such as Scotch whiskey, electric vehicles, lamb meat, chocolates and certain confectionery products.
Britain is also looking at more opportunities for British services in Indian markets in segments such as telecommunications, legal and financial services (banking and insurance).
The two countries are also negotiating a bilateral investment treaty (BIT).
There are 26 chapters of the agreement, including goods, services, investments and intellectual property rights.
Bilateral trade between India and the UK increased to $21.34 billion in 2023-24 from $20.36 billion in 2022-23.
Labour's election manifesto for the recent election also pledged to get the deal done.
The new Foreign Secretary of the new Starmer-led government, David Lammy, also went on record that he wants to finish the work of the FTA and plans to visit India within the first month of being elected.
According to think tank GTRI (Global Trade Research Initiative), the deal is almost finalized and with some minor adjustments, such as reducing the number of visas for Indian professionals, the Labor Party is likely to give its approval.
It has suggested that India should focus on two issues – the Carbon Border Adjustment Measure (CBAM) and non-traditional issues such as labour, environment, gender and intellectual property rights – in the pact.
India has historically resisted incorporating these issues into FTAs, as they often require domestic policy changes.
The GTRI report has stated that even if the UK agrees to remove tariffs in sectors such as textiles, Indian exports may still need to meet strict UK sustainability requirements, and this could negatively impact Indian exports, especially in the sectors with intensive use of labor.
Talks between India and the United Kingdom for the proposed free trade agreement (FTA) began in January 2022. The 14th round of talks stalled as the two nations entered their general election cycles.
The official said the two sides are in contact and the next round would begin only this month.
Britain's newly elected Prime Minister Keir Starmer spoke to Prime Minister Narendra Modi on Saturday and said he was willing to conclude an FTA that works for both sides.
The two leaders agreed to work towards the early conclusion of a mutually beneficial FTA between India and the United Kingdom.
There are pending issues in both the goods and services sectors.
The Indian industry is demanding greater access to the UK market for its skilled professionals in sectors such as IT and healthcare, along with market access for various products without customs duty.
On the other hand, the United Kingdom is seeking a significant reduction in import duties on goods such as Scotch whiskey, electric vehicles, lamb meat, chocolates and certain confectionery products.
Britain is also looking at more opportunities for British services in Indian markets in segments such as telecommunications, legal and financial services (banking and insurance).
The two countries are also negotiating a bilateral investment treaty (BIT).
There are 26 chapters of the agreement, including goods, services, investments and intellectual property rights.
Bilateral trade between India and the UK increased to $21.34 billion in 2023-24 from $20.36 billion in 2022-23.
Labour's election manifesto for the recent election also pledged to get the deal done.
The new Foreign Secretary of the new Starmer-led government, David Lammy, also went on record that he wants to finish the work of the FTA and plans to visit India within the first month of being elected.
According to think tank GTRI (Global Trade Research Initiative), the deal is almost finalized and with some minor adjustments, such as reducing the number of visas for Indian professionals, the Labor Party is likely to give its approval.
It has suggested that India should focus on two issues – the Carbon Border Adjustment Measure (CBAM) and non-traditional issues such as labour, environment, gender and intellectual property rights – in the pact.
India has historically resisted incorporating these issues into FTAs, as they often require domestic policy changes.
The GTRI report has stated that even if the UK agrees to remove tariffs in sectors such as textiles, Indian exports may still need to meet strict UK sustainability requirements, and this could negatively impact Indian exports, especially in the sectors with intensive use of labor.
