India & UK Free Trade Agreement :
India and the United Kingdom are making significant progress in their discussions towards a Free Trade Agreement (FTA). India’s Commerce and Industry Minister, Piyush Goyal, recently concluded a two-day visit to London, where he engaged in productive meetings aimed at accelerating the negotiations.
Goyal met with his UK counterpart to reinforce their shared commitment to strengthening the economic ties between the two nations through this agreement. He expressed optimism about the advancements made so far.
While a substantial portion (approximately 80%) of the FTA has been legally reviewed, some complex issues remain. These include aspects related to financial and legal services, as well as the UK’s proposed carbon border adjustment mechanism (CBAM), scheduled for implementation in 2027.
The UK is particularly interested in expanding opportunities for its service sectors within India, encompassing telecommunications, legal services, banking, and insurance. They are also advocating for the free flow of data across borders.
To date, India and the UK have conducted 14 rounds of negotiations concerning the FTA. The trade relationship between the two countries is growing, with bilateral trade reaching $21.34 billion in FY24, up from $20.36 billion the previous year. Both nations aim to double their trade in goods within the next decade, targeting an increase from the current $20 billion.
The ongoing discussions cover multiple areas, including the FTA itself, a Bilateral Investment Treaty, and a social security pact.
Image Prompt: A visual representation of the flags of India and the UK merging or intertwining, symbolizing the strengthening trade relationship. Include images representing trade, such as shipping containers, financial buildings, and technology.
Source – FIEO
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