Commerce and Industry Minister Piyush Goyal announced on Wednesday that both India and the United Kingdom are resolutely committed to finalizing the proposed free trade agreement (FTA) between the two countries.
Goyal highlighted the positive initial comments from the newly-elected UK government as a promising sign for the agreement's progress.
"The Labour Party is deeply committed as is the Modi government (for the FTA)," Goyal stated, indicating strong political support from both nations.
Britain's new Prime Minister, Keir Starmer, conveyed his readiness to conclude an FTA beneficial for both sides during a conversation with Indian Prime Minister Narendra Modi on Saturday.
Both leaders have agreed to work towards the swift conclusion of the agreement.
Negotiations for the India-UK FTA began in January 2022 but faced delays as both countries entered their general election cycles. The FTA aims to significantly reduce or eliminate customs duties on a wide range of goods traded between the two nations, while also easing norms to promote trade in services and investments.
Despite progress, several issues remain unresolved, particularly in the goods and services sectors. Indian industry is pushing for greater access for its skilled professionals in the UK market, particularly in the IT and healthcare sectors. Additionally, India seeks duty-free access for several of its goods.
Conversely, the UK is demanding substantial cuts in import duties on products like scotch whiskey, electric vehicles, lamb meat, chocolates, and certain confectionery items. The UK is also seeking enhanced opportunities for its services in India, including telecommunications, legal, and financial services.
Follow us
