Prime Minister Narendra Modi recently engaged in discussions with his British counterpart, Rishi Sunak, underscoring the importance of advancing the bilateral Comprehensive Strategic Partnership and expediting negotiations for a mutually beneficial Free Trade Agreement (FTA). Modi expressed optimism about strengthening ties between India and the UK during a conversation with Sunak, emphasizing the need for an early conclusion to the FTA.
Recent UK-India Trade Talks
Despite the expressed commitment from both sides, recent rounds of trade negotiations between the UK and India have hit a deadlock. According to a Bloomberg report, talks concluded without a breakthrough on significant issues. Following the latest discussions, UK officials returned from New Delhi on March 8, indicating that obstacles remain in key areas such as goods, services, and investments.
Hope Amidst Challenges
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Union Minister Piyush Goyal conveyed optimism about the ongoing negotiations, expressing confidence in positive outcomes in the near future. Goyal assured that Indian officials are actively engaging in various discussions, fostering hope for a successful agreement. However, challenges persist, particularly regarding unresolved issues in trade discussions.
UK’s Flexible Approach
Kemi Badenoch, the UK’s Secretary of State for Business and Trade, acknowledged the complexities surrounding the negotiation process. While affirming the possibility of reaching a trade deal with India before a general election, Badenoch emphasized that the UK is not imposing any artificial deadlines. The UK remains committed to fostering a constructive dialogue with India, prioritizing the quality and substance of the agreement over arbitrary timelines.
Ongoing Negotiations
India and the UK initiated negotiations for a free trade agreement in January 2022, aiming to bolster the existing GBP 36-billion bilateral trading partnership. The 13th round of talks concluded in December last year, with both parties optimistic about reaching an agreement. Currently, discussions are underway in the fourteenth round, with hopes pinned on resolving outstanding issues and achieving a mutually beneficial outcome.
