On the 29th of July 2022, The Republic of India and United Kingdom concluded their fifth round of talk regarding Indo-British Free Trade Agreement (FTA). The conference was held in New Delhi in a hybrid fashion. Some of the negotiation officials joined virtually. Five rounds have been concluded in this Free Trade Agreement between UK and India. Free Trade Agreements are arrangements between two or more countries that eliminate or minimize custom tariff barriers.
The UK India FTA was initiated by British PM Boris Johnson and Narendra Modi in January 2021 India has been an important partner for the UK. The United Kingdom and India have strong cultural links Around 1.5 million British Nationals are of Indian origin. A free trade agreement will place UK in the heart of the Indo-Pacific Region where major economies are situated. This area constitutes around 40% of the globe’s GDP.
A successful free trade agreement will help in empowering small and medium sized enterprises. It shall foster innovation and trade in the 21st century digital world. Indian companies play a key role in Britain’s economy by creating jobs along with tax contribution. Defence and security are key elements of the India-UK deal.
The UK is the 7th largest export destination for India, trade and investment relation with the UK has been highly successful. The UK looks for tariffs cut on goods such as car and Whiskey. India is worlds largest market for whiskey and an FTA will bring huge benefits for scotch whiskey producers.
The United Kingdom also wishes to reduce its dependency on China. Chemicals, pharmaceuticals along with communication and technology offer significant opportunities for UK exporters in the Indian Market. The deal will reduce trade barriers, boost investments, exports and imports along with reduction of transfer of goods and services between the two countries. After Brexit, The FTA shall help in reducing Britain’s dependency on the European Union. The historical British colonialism in India could act as a psychological barrier in this FTA.