 "UK-India FTA 90% agreed, says report as Sitharaman, Reeves discuss bilateral trade ties")
The United Kingdom and India have agreed to almost 90 per cent of the free trade agreement which is currently being negotiated between the two nations. According to The Guardian, the UK is hoping that they will succeed in finalising the coveted trade deal with India, a booming economy of 1.4 billion people, this year.
A British government source told The Guardian that mobility, which involves visas for Indian workers has been one of the most contentious issues in the negotiations between the two nations. The source noted that the issue had been largely resolved. “We are nearly there. We are as close as we’ve ever been, but conversations at the political level cut both ways,” the source told the British news outlet.
At the briefing with UK negotiators from the trade department on Tuesday, businesses were told that 90 per cent of the deal had been agreed. Some of the outstanding issues that are still left to be agreed are related to whisky, cars and pharmaceuticals.
Why the FTA matters
It is pertinent to note that the deal could mean dramatic tariff reductions on the UK’s scotch whisky and car exports to India. Not only this, it will help both the British and Indian economies, which are currently exposed to the tariffs introduced by US President Donald Trump to find an alternative and reliant trade partner.
The source told The Guardian that the call between British negotiators and businesses took place before the meeting between the UK’s Chancellor of the Exchequer and Indian Finance Minister Nirmala Sitharaman. The two leaders are also negotiating a bilateral investment treaty, in parallel to the free trade agreement.
The bilateral treaty would establish legal protections for investments between the UK and India. On Tuesday night, Sitharaman attended a working dinner with Reeves and Keir Starmer. On Wednesday, she held talks with Jonathan Reynolds, the trade secretary, who travelled to New Delhi in February to formally relaunch the talks.
While addressing an event at the Indian High Commission before meeting the British leadership, Sitharaman said that India is seeking more bilateral trade agreements as a result of global uncertainties “multiplying by the day”.
Impact Shorts
More ShortsSpeaking to the reporters after the talks, the Indian finance minister said that there was a “great sense of positivity and dedication” to conclude the UK-India deal soon. Ministers announced a package of £128m in new export deals and investments with India after her visit. Meanwhile, Reeves noted that ministers were pursuing trade deals with countries including India because it was “imperative we go further and faster to kickstart economic growth."
The negotiations for an FTA between the two nations were launched by the UK, with many in the country considering it as a prize of Brexit. In January 2022. Successive Conservative governments sought to strike a quick deal with little to no success.
With inputs from agencies.
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
