India is actively restarting trade negotiations with the United Kingdom and the European Union to finalize long-pending free trade agreements (FTAs). These talks aim to boost economic ties and address key trade concerns.
India-UK Trade Deal
India and the UK first started FTA negotiations in January 2022. However, talks slowed down due to political changes and elections in both countries. Now, both nations are keen to accelerate discussions.
A major point in the India-UK trade deal is tariff reduction. The UK wants lower import duties on its key exports, including food products, whisky, and automobiles. On the other hand, India is pushing for better visa policies, including post-study work visas for Indian students and social security agreements for Indian professionals working in the UK.
Recently, UK Business Secretary Jonathan Reynolds met Indian Commerce Minister Piyush Goyal in New Delhi to discuss the next steps. Both sides are hopeful that an agreement will be reached soon. The trade between India and the UK is already significant, reaching £41 billion by September 2024.
India-EU Free Trade Agreement
India and the EU had initially started trade negotiations in 2007, but talks were halted in 2013 due to disagreements over customs duties and movement of professionals. The discussions restarted in 2022, and now both sides are working to resolve key concerns.
One of the main issues is the EU’s Carbon Border Adjustment Mechanism, which affects exports from India. India is also focusing on investment protection measures to ensure fair business conditions.
Why These Trade Deals Matter
With changing global trade dynamics and new tariff policies from the US, India is looking to strengthen its economic ties with other global partners. Finalizing these trade deals will open new business opportunities, increase investment, and boost economic growth.
As discussions progress, both agreements have the potential to bring significant benefits to India, the UK, and the EU. Businesses and investors are eagerly waiting for the final agreements to be signed.
