India and UK to Resume FTA Talks in 2025, Strengthening Trade Relations

India will recommence Free Trade Agreement talks with the UK in 2025, following a meeting between leaders Modi and Starmer. The FTA, crucial for increasing Indian exports and achieving trade targets, aims to assure the UK of vital supplies amidst geopolitical issues. While previous rounds faced interruptions, renewed focus indicates a drive towards resolving key sticking points.

India has designated the United Kingdom as a ‘priority country’ and plans to resume negotiations for a Free Trade Agreement (FTA) in 2025, following discussions between Prime Minister Narendra Modi and UK Prime Minister Sir Keir Starmer during the G-20 Summit. The UK aims to secure a reliable supply of food and other essentials through this FTA, which is expected to significantly increase Indian exports to the UK, potentially quadrupling them by 2030 and aiding India’s ambitious target of $1 trillion in merchandise exports. These vital trade talks, initiated in January 2022, were temporarily paused after entering their 14th round in May 2023 due to political changes in the UK. Despite the resumption under Prime Minister Rishi Sunak, differences remain, particularly concerning import duties on automobiles and whisky, as well as visa policies for business travel. Both nations express optimism for a mutually advantageous agreement soon, as India continues to export various commodities, including petroleum, pharmaceuticals, and machinery to the UK, fostering a steadily growing trade relationship.

The resumption of FTA negotiations between India and the UK comes at a crucial time, characterized by ongoing geopolitical challenges and rising inflation in the UK. The UK’s urgency for a trade agreement is underscored by its reliance on India to enhance food supply and stabilize prices. The FTA is viewed as essential for India to boost its exports and meet its ambitious trade goals. Political instability in the UK had previously obstructed progress, but with new leadership, both countries are keen to move forward and finalize a deal addressing key outstanding issues.

In conclusion, the impending resumption of FTA discussions marks a significant step in enhancing India-UK trade relations, with expected benefits for both economies. The focus on overcoming past challenges suggests a determined commitment from both nations to achieve a comprehensive and advantageous agreement. Ultimately, this FTA could not only benefit trade volumes but also contribute to broader economic stability and collaboration in the region.

Original Source: www.hindustantimes.com