Commerce ministry officials reach London to hash out contours of India-UK FTA

Indian commerce ministry officials are currently in London to engage in discussions regarding the long-awaited Free Trade Agreement (FTA) between India and the United Kingdom.

Sources in the Department of Commerce and Industry said that India and the UK are on the brink of finalising a mutually advantageous FTA. "This marks the 13th round of negotiations, and we are hopeful of sealing the deal soon," a government official said.

Initial expectations that the agreement would be concluded by Diwali 2023 are not being met, with officials saying that giving an exact timeline is challenging. “Discussions have been underway since last October. However, in complex and pivotal negotiations like these we it is not possible to specify timelines”, the sources added.

The FTA comprises 26 chapters encompassing goods, services, investments and intellectual property rights. According to sources, a majority of these chapters have been successfully closed, and officials are currently addressing the remaining issues.

Indian industry anticipates that the FTA will lead to enhanced access for skilled professionals, particularly in sectors like information technology and healthcare, to the UK market. On the other hand, British industry is looking forward to streamlined business operations and reduced import duties on items such as automobiles, liquor and confectionery among others.

Separately, both governments have also been discussing a simpler visa issuance process, where internal company transfers for Indian professionals would become easier.

Bilateral trade between India and the UK saw a significant increase, reaching $20.36 billion in 2022-23.

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