India and Britain could sign a free trade agreement (FTA) this year as both countries are working to iron out differences on issues including investment treaties, intellectual property rights (IPRs), and rules of origin, according to media reports.
India and Britain could sign a free trade agreement (FTA) this year as both countries are working to iron out differences on issues including investment treaties, intellectual property rights (IPRs), and rules of origin, according to media reports.
Sunil Barthwal, India’s commerce secretary said that on almost all contentious issues, negotiations were completed, and the deal could be signed “much before” the end of the year.
Sunil Barthwal, India’s commerce secretary said that on almost all contentious issues, negotiations were completed, and the deal could be signed “much before” the end of the year.
“We are very close and are trying to conclude the talks as early as possible,” the official said.
“We are very close and are trying to conclude the talks as early as possible,” the official said.
Out of the total 26 chapters in the FTA, 19 have been closed.
Out of the total 26 chapters in the FTA, 19 have been closed.
“Remaining issues include IPRs, rules of origin, and investment treaty,” the official added.
“Remaining issues include IPRs, rules of origin, and investment treaty,” the official added.
In the rules of origin chapters, both countries are talking about product-specific rules, value addition, change in chapter heading, and certification.
In the rules of origin chapters, both countries are talking about product-specific rules, value addition, change in chapter heading, and certification.
For India, an FTA with the UK would be its first with a developed country after it signed an interim trade pact with Australia last year.
For India, an FTA with the UK would be its first with a developed country after it signed an interim trade pact with Australia last year.
For Britain, it is part of a quest for diversified global trade relationships after its 2020 exit from the European Union.
For Britain, it is part of a quest for diversified global trade relationships after its 2020 exit from the European Union.
“While we’ve made good progress in closing chapters, we’re now focused on the high ambition areas including goods, services, and investment,” a spokesperson for Britain’s Department for Business and Trade said.
“While we’ve made good progress in closing chapters, we’re now focused on the high ambition areas including goods, services, and investment,” a spokesperson for Britain’s Department for Business and Trade said.
“We are clear that we will only sign when we have a deal that is fair, balanced, and ultimately in the best interests of the British people and the economy.”
“We are clear that we will only sign when we have a deal that is fair, balanced, and ultimately in the best interests of the British people and the economy.”
The 11th round of talks was concluded recently in London during a visit by Barthwal and Commerce and Industry Minister Piyush Goyal.
The 11th round of talks was concluded recently in London during a visit by Barthwal and Commerce and Industry Minister Piyush Goyal.
Bilateral trade between India and the United Kingdom rose 16.6% year-on-year to $20.42 billion in the 2022-23 fiscal year ending in March.
Bilateral trade between India and the United Kingdom rose 16.6% year-on-year to $20.42 billion in the 2022-23 fiscal year ending in March.
India’s main exports to the UK are ready-made garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, transport equipment, spices, machinery and instruments, pharmaceuticals, and marine products.
India’s main exports to the UK are ready-made garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, transport equipment, spices, machinery and instruments, pharmaceuticals, and marine products.
The main imports include precious and semi-precious stones, ores and metal scraps, engineering goods, and professional instruments other than electronics, chemicals, and machinery.
The main imports include precious and semi-precious stones, ores and metal scraps, engineering goods, and professional instruments other than electronics, chemicals, and machinery.
In the services sector, the UK is the largest market in Europe for Indian IT services. In the field of investment, the UK is one of the top investors in India.
In the services sector, the UK is the largest market in Europe for Indian IT services. In the field of investment, the UK is one of the top investors in India.
In 2022-23, India received $1.74 billion in foreign direct investment from the UK as against $1 billion in 2021-22.
In 2022-23, India received $1.74 billion in foreign direct investment from the UK as against $1 billion in 2021-22.
During April 2000 and March 2023, investments stood at $33.9 billion. Under such pacts, two trading partners significantly reduce or eliminate customs duties on the maximum number of goods traded between them, besides easing norms to promote trade in services and investments.
During April 2000 and March 2023, investments stood at $33.9 billion. Under such pacts, two trading partners significantly reduce or eliminate customs duties on the maximum number of goods traded between them, besides easing norms to promote trade in services and investments.
The UK, which has a $3.1 trillion economy according to World Bank data, has long been a service sector powerhouse. The city of London, which is one of the world’s biggest financial markets, has also long attracted Indian companies seeking to raise funds from the global market.
The UK, which has a $3.1 trillion economy according to World Bank data, has long been a service sector powerhouse. The city of London, which is one of the world’s biggest financial markets, has also long attracted Indian companies seeking to raise funds from the global market.
