The sixth round of talks between senior officials from India and the UK for a draft free trade agreement (FTA) will begin here on Monday with the aim of concluding the talks at the earliest, an official said.
The sixth round of talks between senior officials from India and the UK for a draft free trade agreement (FTA) will begin here on Monday with the aim of concluding the talks at the earliest, an official said.
The negotiations are taking place after a brief hiatus due to recent political developments in the UK.
The last round of talks took place on July 29.
“The sixth round of talks begins on December 12,” the official said.
Trade in goods, including passenger vehicles, is one of the areas under negotiation, which started on January 13, 2022.
In a free trade agreement, two countries significantly reduce or eliminate customs duties on the maximum number of goods traded between them. The British side is asking for tariff concessions in the automotive sector.
Last month Trade and Industry Minister Piyush Goyal said the deal was a priority for the two countries. He added that things are progressing well and that it will bring good results.
“We are all very aware that it was progressing very quickly until we had a bit of a blow because of the political events in the other country… We have a stable government… in place now (in the UK) and I am already in contact with my (British) counterpart. We are working together to possibly have a face-to-face meeting also very soon, but our teams are already engaged. Next month the next round of negotiations should take place,” Goyal said. .
India and Britain launched negotiations for the FTA in January with the aim of concluding the talks by Diwali (October 24), but the deadline was missed due to political developments in the UK. There are 26 chapters in the agreement, which include goods, services, investment and intellectual property rights.
Reducing or eliminating tariffs under the pact would help India’s labour-intensive sectors like textiles, leather, gemstones and jewelery boost exports to the UK market. The UK is seeking tariff concessions in areas such as Scotch whiskey and automobiles.
Bilateral trade between the two countries increased to $17.5 billion in 2021-22 from $13.2 billion in 2020-21. India’s exports stood at $10.5 billion in 2021-2022, while imports were $7 billion.
India’s major exports to the UK include ready-made garments and textiles, gemstones and jewellery, engineered goods, petroleum and petrochemical products, transport equipment and parts, spices, metals, machinery and instruments, pharmaceuticals and marine products.
Major imports include precious and semi-precious stones, metal ores and scrap, engineering goods, professional instruments, non-ferrous metals, chemicals and machinery.
The UK is also a key investor in India. New Delhi attracted $1.64 billion in foreign direct investment in 2021-22. The figure was around $32 billion between April 2000 and March 2022.
In the services sector, the UK is one of the largest markets in Europe for Indian IT services.
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