The UK and India have made significant progress in their free trade agreement, with 90% of the deal agreed upon, paving the way for dramatic tariff reductions on scotch whisky and car exports to India.
The UK and India have made significant progress in their free trade agreement, with 90% of the deal agreed upon. This development is seen as a major breakthrough in the negotiations, which have been ongoing since January 2022.
The UK and India have a long-standing trade relationship, with bilateral trade valued at over £18 billion in 2020.
The UK is one of India's largest trading partners in Europe, while India is the UK's seventh-largest trading partner worldwide.
Key sectors driving this growth include automotive, pharmaceuticals, and IT services.
In 2019, the UK-India Trade Working Group was established to boost trade ties, with a focus on increasing exports and investments between the two countries.
The outstanding issues that remained unresolved earlier this year include some agricultural exports and India’s demand to be excluded from the UK’s forthcoming border tax. However, a government source has stated that mobility, including visas for Indian workers, had largely been resolved.
Tariff reductions on ‘scotch whisky‘ and car exports to India, helping two sectors of the UK economy that are heavily exposed to the impact of Donald Trump‘s tariffs in the US, is a significant development. This would help to boost British trade with one of its largest emerging markets.
The UK and India are also negotiating a bilateral investment treaty, which would establish legal protections for investments between the two countries. The treaty is a top priority for ministers because of the benefits it would bring to the British financial services sector.
The UK-India Investment Treaty is a bilateral agreement between the two countries to promote and protect investments.
The treaty aims to provide a stable and predictable environment for businesses to operate, encouraging economic growth and development.
Key features include protection of intellectual property rights, dispute resolution mechanisms, and fair treatment of investors.
The treaty also promotes transparency and cooperation in investment-related matters.
Negotiations were concluded in 2021, with the aim of enhancing bilateral trade and investment ties between the UK and India.
Speaking to reporters after her meetings with UK ministers, ‘there was a great sense of positivity and dedication’ to conclude the agreement soon, stated by India’s finance minister Nirmala Sitharaman. Ministers also announced a package of £128m in new export deals and investments with India.
The UK government is pursuing trade deals with countries like India because it is imperative to kickstart economic growth. The deal with India could bring significant benefits, including fueling innovation and generating high-skilled jobs in both countries.
The UK-India trade deal is a significant agreement between the two countries, aimed at increasing bilateral trade and investment.
The deal covers areas such as goods, services, and digital trade.
In 2020, the UK's trade with India was valued at £13 billion, with Indian companies investing £1.2 billion in the UK.
Key sectors for cooperation include technology, healthcare, and finance.
The deal also facilitates easier travel between the two countries through a mutual recognition of professional qualifications.
- theguardian.com | ‘We are nearly there’: UK and India agree 90% of free trade agreement
