AbdulQadir7
FULL MEMBER
- Joined
- Aug 7, 2024
- Messages
- 1,229
- Reaction score
- 0
- Country
- Location
With 90% of the deal purportedly agreed upon, the ongoing free trade agreement (FTA) negotiations between the UK and India have advanced significantly, with both nations hoping to complete the deal by the end of 2025, this development represents a significant turning point in the negotiations, which started in January 2022, it is anticipated that the FTA will transform bilateral trade, accelerate economic expansion and fortify bonds that date back hundreds of years of historical exchange between the two countries.
With multiple rounds of talks conducted over the previous few years, the negotiations have been a difficult process, despite early setbacks brought on by both nation elections, the negotiations picked up steam in early 2025 under the direction of Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, one significant development was the resolution of mobility difficulties, including those pertaining to Indian professionals access to visas, in the discussions, this has long been a subject of contention, with India demanding improved mobility for its highly qualified labor population, by resolving this challenge, more collaboration in the areas of services, investment, and digital trade may become possible.
The agreement is expected to bring steep tariff cuts for UK exports such as Scotch whisky and luxury vehicles, two sectors heavily impacted by protectionist tariffs in the United States. These reductions would give British producers improved access to India's expanding consumer market, home to over 1.4 billion people, the automotive and beverage industries are particularly optimistic about the growth opportunities this presents, additionally the FTA aims to strengthen pharmaceutical supply chains, another key area where both nations have overlapping interests.
A bilateral investment treaty that would provide legal protections for investments made between the UK and India is being negotiated by both nations concurrently with the FTA, in order to boost investor trust and ease cross border investment, this pact is essential, new export and investment agreements of £128 million were signed during recent meetings between Indian Finance Minister Nirmala Sitharaman and UK officials, indicating that deeper economic links will continue to develop regardless of the FTA's ultimate timeframe.
The British East India Company had its initial foothold in Surat in 1612, marking the beginning of the historical trading link between India and the UK, the economic systems of both nations bear the enduring effects of this legacy, after historical injustices, a breakthrough was signaled in 2025 when negotiations were resumed, most of the 26 chapters that addressed investments, intellectual property rights, products, and services had been settled by the beginning of 2025, the resolution of outstanding concerns, including financial services deregulation, tariff concessions on Scotch whisky, and rules of origin, is now imminent.
The FTA is expected to have a major positive economic impact on India, over half of Indian $12.9 billion in merchandise exports to the UK in FY24 were subject to low or no tariffs, by lowering charges on $6.1 billion worth of commodities with mild tariffs, such as textiles, clothing, footwear, and marine products, the agreement might increase exports even more, industries like leather and textiles, which generate a lot of jobs, stand to benefit from the deal, which might lower unemployment and strengthen rural economies, due to current low tariffs, the Global Trade Research Initiative (GTRI) projects limited short-term gains but points to a significant long-term impact as market access expands.
The FTA is seen by the UK as a crucial post-Brexit chance to shift its focus to Indo-Pacific markets, in the meantime, India, which aims to export $2 trillion by 2030, views it as a gateway to Western markets, the deal is a component of both countries' larger plan to strengthen economic cooperation. Significant reductions in import taxes are sought by the UK for products like lamb meat, electric cars, Scotch whiskey, chocolates, and some confections, in exchange, India is asking for increased access to the UK market for its highly qualified workers in industries like IT and healthcare, as well as free customs tax on a number of commodities.
With multiple rounds of talks conducted over the previous few years, the negotiations have been a difficult process, despite early setbacks brought on by both nation elections, the negotiations picked up steam in early 2025 under the direction of Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, one significant development was the resolution of mobility difficulties, including those pertaining to Indian professionals access to visas, in the discussions, this has long been a subject of contention, with India demanding improved mobility for its highly qualified labor population, by resolving this challenge, more collaboration in the areas of services, investment, and digital trade may become possible.
The agreement is expected to bring steep tariff cuts for UK exports such as Scotch whisky and luxury vehicles, two sectors heavily impacted by protectionist tariffs in the United States. These reductions would give British producers improved access to India's expanding consumer market, home to over 1.4 billion people, the automotive and beverage industries are particularly optimistic about the growth opportunities this presents, additionally the FTA aims to strengthen pharmaceutical supply chains, another key area where both nations have overlapping interests.
A bilateral investment treaty that would provide legal protections for investments made between the UK and India is being negotiated by both nations concurrently with the FTA, in order to boost investor trust and ease cross border investment, this pact is essential, new export and investment agreements of £128 million were signed during recent meetings between Indian Finance Minister Nirmala Sitharaman and UK officials, indicating that deeper economic links will continue to develop regardless of the FTA's ultimate timeframe.
The British East India Company had its initial foothold in Surat in 1612, marking the beginning of the historical trading link between India and the UK, the economic systems of both nations bear the enduring effects of this legacy, after historical injustices, a breakthrough was signaled in 2025 when negotiations were resumed, most of the 26 chapters that addressed investments, intellectual property rights, products, and services had been settled by the beginning of 2025, the resolution of outstanding concerns, including financial services deregulation, tariff concessions on Scotch whisky, and rules of origin, is now imminent.
The FTA is expected to have a major positive economic impact on India, over half of Indian $12.9 billion in merchandise exports to the UK in FY24 were subject to low or no tariffs, by lowering charges on $6.1 billion worth of commodities with mild tariffs, such as textiles, clothing, footwear, and marine products, the agreement might increase exports even more, industries like leather and textiles, which generate a lot of jobs, stand to benefit from the deal, which might lower unemployment and strengthen rural economies, due to current low tariffs, the Global Trade Research Initiative (GTRI) projects limited short-term gains but points to a significant long-term impact as market access expands.
The FTA is seen by the UK as a crucial post-Brexit chance to shift its focus to Indo-Pacific markets, in the meantime, India, which aims to export $2 trillion by 2030, views it as a gateway to Western markets, the deal is a component of both countries' larger plan to strengthen economic cooperation. Significant reductions in import taxes are sought by the UK for products like lamb meat, electric cars, Scotch whiskey, chocolates, and some confections, in exchange, India is asking for increased access to the UK market for its highly qualified workers in industries like IT and healthcare, as well as free customs tax on a number of commodities.
