India uk fta: The conversation on the proposed free trade agreement (FTA) between India and Britain has once again started having a buzz. For a long time, both countries have been talking about this, but are not able to reach any final decision. So far, there has been bilateral talks between the two countries more than 10 times. According to media reports, an entire team led by Britain’s Trade Minister Jonathan Reynolds is coming to New Delhi on 24 February to re -start this discussion. The last time the subject was discussed between the two countries in March 2024. Since then, negotiations on FTA between the two countries have been closed.
Let us know that talks on FTA between India and Britain are an important and long -running issue. This agreement can be a major step in promoting commercial relations between the two countries, strengthening economic cooperation and economic growth. Through FTA, different obstacles in trade between the two countries can be overcome, which can easily reach each other countries.
History of FTA between the two countries
The FTA talks between India and Britain began in January 2022. After exiting the European Union (EU), Britain had stepped towards new trade agreements with countries around the world. India was also an important partner among them, as there have been historical and business relations between India and Britain. Keeping this in mind, FTA talks were started to further progress between Britain and India.
The main objective of the FTA dialogue between India and Britain was to promote bilateral trade. Britain saw India as a major partner, as India’s economy is one of the fastest growing economies in the world. Britain took a new turn in its economic policy, and planned to expand relations with countries around the world through trade agreements.
At the same time, it was a golden opportunity for India, as the possibility of exporting Indian products in Britain without any fee through FTA could have increased. This could have been an important step for the Indian industry, especially the service sector. India felt that India’s exports could increase by promoting trade with Britain through FTA, and new employment opportunities may arise.
Why did the talks stop?
At the beginning of the FTA negotiations, there were differences between the two countries on various issues. Britain had pressurized India over some issues, while India was careful about its economic interests. In these issues, intellectual property rights (IPR), human property and environmental rules, and fees on products were prominent. These disputes led to differences in negotiations and negotiations were stopped for some time.
Apart from this, the FTA talks also came to a standstill due to general elections in Britain. When the election process was completed in Britain and the new government was formed, the British Prime Minister Kir Stmper announced to resume the FTA talks with India. Subsequently, leaders of India and Britain interacted on the subject and decided that the talks would be resumed in early 2025.
What are the big issues of FTA talks?
India and Britain raised many important issues in FTA talks, some of which are major issues:
1. Rules of Origin: ‘Rules of Origin’ determines what the real country of a product is. If most of a product is formed in India, it will be recognized as an Indian product. Britain wanted these rules to be strict so that the products of other countries do not get the benefit of Indo-Bitten FTA in the wrong way. India took a tough stand on this issue and try to ensure that these rules are in the interest of Indian industries.
2. Labor and Environment: Britain wanted high standards in matters of labor and environment. He wanted some labor rights and environmental rules to be compromised under FTA. India clarified its position on this and said that the ‘best effort’ would be emphasized without any binding commitment. It was a challenging task to compromise between the two countries on this issue.
3. Intellectual Property Right (IPR): Britain had hoped strict rules regarding intellectual property rights, while India wanted no step in the field of intellectual property rights that should be harmful for Indian companies. This was an issue that took time to solve.
4. Service Sector: The service sector is a major economic sector in India, including major areas such as information technology (IT), health services and education. India expected more opportunities from Britain to these regions, while Britain had demanded to reduce fees in certain areas for its exports. This has been a major issue in talks between the two countries.
Why is the talks starting again?
After the general elections in Britain, held in 2024, leaders of India and Britain have taken steps to resume this dialogue. The subject was discussed by Indian Prime Minister Narendra Modi and British Prime Minister Kir Stmper during the G20 summit and it was decided that FTA talks would resume in early 2025.
FTA may increase trade between India and Britain a lot. According to 2024 data, India has exported $ 7.32 billion to Britain, which is 12.38 percent more than the previous year. In 2023, India exported $ 6.51 billion. If we talk about bilateral trade, trade between India and Britain increased from US $ 20.36 billion in 2022-23 to US $ 21.34 billion in 2023-24.
India’s trade deficit may decrease through FTA and there may be an increase in opportunities in the Indian market for Britain.
However, the agreement can provide many benefits to the two countries, but it will be necessary to resolve some controversial issues first. If these issues are resolved, the path of FTA will be easier for both countries and it will get both economies.
What do experts believe?
Dr. Swasti Rao, an international affairs expert in international affairs and non -resident Fellow of Eastern Circle, says, “India FTA has signed from many countries before, but the present government has given special attention to whether India has any benefit from FTA Are getting? It was seen that we are signing FTA, but in reality India is getting any special benefit. If you see trade balance in the countries from which our FTA is first, then it is always in the surplus of other countries. Meaning we import more than those countries and can reduce exports. It has been a major problem with India about FTA. ”
Swasti further says, “But later the Modi government started talks with countries with which India’s trade will be surplus. Ever since the Ukraine-Russia war started, India started negotiating from two to three places in Europe. EU, EFTA countries (Iceland, Lichettenstein, Norway, Switzerland) and Britain started negotiations on FTA. We have become a point with EFTA. But if we talk about the trade relationship between India and Britain, then there are two things that make Britain important for India. The first thing is that our trade with Britain is in goods and surplus in service. This is important because we are in trade deficit with many countries. The second thing is that in the economic health of India right now, India is not able to earn from foreign direct investment, India is earning more than remedies. Britain is one of the top four countries from which India comes to the most remedies. From this we understand why Britain is so important for India. ”
What do both countries want? Swasti says, “In the terms of FTA, Britain wants that if he signs it with India, it needs maximum access to the Indian market.” There are differences between the two. India demands that we will do this when you make the regulation easier for our service. India’s demand is to open its doors completely for our skill professional, IT sector, healthcare. ”
Will the finals happen this year?
The issue has been in talks for the last three years, but no final decision is being taken on it. Swasti Rao believes that if everything goes well, the FTA will be finalized between India and Britain in the year 2025. She says, “This talk started between India and Britain during Boris Johnson, since then four PMs have been built there. However, every Prime Minister looked excited about FTA, but the final decision could not be made. The present government is looking very excited about FTA. If everything goes well, the final decision on FTA between the two countries is scheduled this year. Nothing can be said on EU, because it has 27 countries and everyone has their own ambitions, but this time with Britain, FTA is expected to take a final decision on FTA. ”