India, UK could sign trade deal this year: commerce official

India and Britain may sign a free trade agreement (FTA) this year because both nations have agreed on the general framework of the proposed pact, which aims to increase economic growth and employment.

India UK could sign trade deal this year: According to Sunil Barthwal, India’s commerce secretary, “we want to finalise the deal as soon as possible.”

Negotiations, according to him, were virtually always over by this point, and a deal might be finalised “much before” the year’s end.

The UK would get greater access for its whisky, high-end vehicles, and legal services, while New Delhi sees an FTA with Britain as essential to dreams of becoming a larger exporter.

After signing an interim trade agreement with Australia last year, an FTA with the UK would mark India’s first with a developed nation.

Following its departure from the European Union in 2020, Britain will seek out a variety of international trade relationships.

For Indian Prime Minister Narendra Mod, who wants to establish New Delhi’s reputation as a business-friendly city ahead of the country’s early-year elections, it comes at a key time.

The 11th round of negotiations came to an end yesterday in London during a trip by Commerce and Industry Minister Piyush Goyal and Barthwal.

Status of India-UK Free Trade Agreement Negotiations and Bilateral Trade Figures

According to Barthwal, discussions on 19 of the 26 FTA chapters—including those pertaining to the delicate car industry—have come to an end.

Separate sources from the commerce ministry stated that the nations had still to resolve disagreements about intellectual property rights, rules of origin, and an investment treaty.

According to Barthwal, the customs officials of both nations are still working out the modalities, although they have resolved the question of investment laws in theory.

When questioned about the specific concessions India was making to the UK, he responded, “Nothing is final until everything is final,” adding that the next round of talks will soon take place.

According to Barthwal, whereas Britain requested tariff concessions in other areas, India is asking for a “zero tariff” for labor-intensive manufacturing sectors like textile, leather, and other.

In the fiscal year 2022–23 that ended in March, bilateral trade between India and the United Kingdom increased 16.6% year over year to $20.42 billion.