Mumbai, India (CU)_ According to the UK government, official discussions for an India-UK free trade agreement (FTA) are poised to begin early next year as officials on both sides continue their involvement following the closure of working groups in October. A UK government official stated that the government is planning to commence the discussions early next year.
Additionally, a government spokesperson also denied a British media report claiming divisions in the UK Cabinet about food safety concerns related to the proposed UK-India FTA, indicating that all government departments are working together to reach an agreement with India that would create enormous opportunities for UK businesses. According to the spokesperson, India is expected to become the third biggest economy in the world by 2050, and a trade agreement will provide enormous potential for UK firms to trade with India’s GBP 2 trillion economy.
DIT – Department for International Trade stated that arrangements for the start of discussions for the UK-India FTA are in progress since the end of bilateral working groups. At the G20 trade ministers conference in Sorrento, Italy, in October, UK International Trade Secretary Anne-Marie Trevelyan and her Indian companion Commerce and Industry Minister Piyush Goyal met to finalize the arrangements for the start of UK-India FTA discussions. The United Kingdom has stated that it seeks an agreement with India that lowers the hurdles to conduct smooth business and commerce with the country.
According to Lord Karan Bilimoria, president of the Confederation of British Industry (CBI), negotiations are expected to start soon. According to the London-based entrepreneur and founding head of the UK India Business Council (UKIBC), the CBI will engage in the negotiations, representing over 190,000 UK firms. The council also emphasized the areas of discussions at the FTA.
During a virtual meeting between Prime Minister Narendra Modi and his UK counterpart, Boris Johnson, in May, India and the UK signed an Enhanced Trade Partnership with the aim of doubling bilateral trade to GBP 50 billion by 2030. The FTA is considered as the next phase in the bilateral relationship, with some talks of a preliminary agreement ahead of a complete agreement.
