India has granted the UK “priority country” status as it prepares to resume FTA negotiations in 2025, aiming to quadruple exports to the UK by 2030. The UK seeks to stabilize food supplies and inflation amid geopolitical issues. Despite previous delays due to political changes in the UK, both nations remain optimistic about finalizing a mutually beneficial agreement.
The Government of India has designated the United Kingdom as a “priority country” as it prepares to resume negotiations for a Free Trade Agreement (FTA) in 2025. This decision comes after discussions between Prime Minister Narendra Modi and UK Prime Minister Sir Keir Starmer during the recent G-20 Summit in Rio de Janeiro. A successful FTA could potentially quadruple Indian exports to the UK by 2030 and support India’s goal of achieving $1 trillion in merchandise exports by the fiscal year 2030. India’s commerce ministry has expressed optimism regarding the relaunch of these talks, which were previously suspended after reaching the 14th round in January. The UK is particularly interested in an FTA to secure food supplies and stabilize prices amidst global geopolitical tensions. Trade between the countries has shown positive growth, with UK exports to India rising over 30.5% and India’s exports to the UK increasing by 12.38% in the early months of 2024-25 compared to the same period from the previous year. The original FTA negotiations, initiated in early 2022 under Prime Minister Modi and then-Prime Minister Boris Johnson, saw significant progress until political instability in the UK hindered further advancement. With Rishi Sunak’s government taking over, negotiations resumed, yet unresolved issues such as reduced import duties on goods like automobiles and scotch whisky remain. The incoming Labour government may also reassess previously agreed matters, presenting additional challenges. Despite these hurdles, both governments are keen on finalizing a fair and advantageous agreement. The specifics of the resumption of FTA talks in early 2025 will be communicated through diplomatic channels soon. The upcoming discussions aim to build on earlier progress and bridge existing gaps to expedite the conclusion of the trade deal. The UK remains one of India’s top ten trading partners, evidencing the nations’ vital economic ties and shared aspirations for deeper collaboration.
The anticipated resumption of Free Trade Agreement (FTA) negotiations between India and the United Kingdom indicates a strategic enhancement of bilateral trade relations. The context arises from prior attempts to establish trade agreements that encountered delays due to political changes in the UK. With evolving global economic conditions and shifting political landscapes, both nations are motivated to secure a comprehensive agreement that boosts trade volumes and ensures market stability.
In summary, India’s commitment to resume FTA talks with the UK underscores the importance of fostering international trade relationships amidst geopolitical uncertainties. With significant growth in trade volumes and shared economic goals, both countries are poised to collaborate closely to address lingering issues and finalize an agreement that benefits both parties. The resumption of talks in 2025 will be a crucial step towards enhancing trade ties and achieving substantial economic growth.
Original Source: www.hindustantimes.com
