HIGHLIGHTS:
- The United Kingdom has begun talks with India on a free trade agreement
- This decision is being hailed as a “great chance” for British enterprises to gain a foothold in the Indian economy.
- The first round of talks is expected to begin in January 2022.
The UK government announced the start of free trade agreement (FTA) negotiations with India on January 13, 2022.
Facts you can’t ignore
- This decision is being hailed as a “great chance” for British enterprises to gain a foothold in the Indian economy.
- The FTA is expected to take the UK’s long-standing relationship with India to the next level.
- Scotch whiskey, financial services, and cutting-edge renewable technology will all profit from this FTA.
- India-UK both countries are expected to benefit greatly from the FTA.
- By 2035, it has the potential to increase bilateral commerce by GBP 28 billion per year.
- The agreement will also contribute to a GBP 3 billion salary increase across the UK.
The first round of talks has begun.
The first round of talks is expected to begin in January 2022. This round would be the UK’s shortest commencement of formal negotiations between negotiating teams, according to the British government.
What is a Free Trade Agreement (FTA)?
Two trading partners lower or abolish import levies on a large number of items exchanged between them under the FTA.
Bilateral Trade between India and the United Kingdom
India and the United Kingdom have a long history together. The United Kingdom is currently one of India’s most important trading partners. After Mauritius and Singapore, which were placed second and first, respectively, the United Kingdom is a large FDI investor for India. The United Kingdom is one of the largest investors in India among the G20 countries. In 2019-20, bilateral trade between the two nations was 15.5 billion USD, down from 16.87 billion USD in 2018-19.
What are the most important industries?
Textiles, pharmaceuticals, leather, furniture, industrial machinery, and toys are among the industries in which India and the UK collaborate.
India is also looking to the United Kingdom for technological products such as medical equipment, autos, and high-resolution cameras.
