In April of last year, Former British Prime Minister, Borris Johnson visited India where he signed a free trade agreement with India. The finalisation of the FTA (Free Trade Agreement) is taking longer than expected. The FTA was expected to be finalised by the end of October this year. According to the original deal, the agreement was supposed to be finalised before Diwali last year.Â
An official told the media that many Indian diplomats have gone to Britain to iron out the differences and negotiate the terms of the deal. He said that although negotiations are taking place in London, expecting it to finish by the end of the month is a stretch.
With this FTA India and the UK will now be able to trade on reduced tariffs and duties which will be beneficial to both nations. The urgency to draft the agreement comes as both nations have elections next year and signing an agreement of this magnitude will help both parties. Recently, India became the 5th largest economy in the world and any free trade agreement will help India as well as the countries India chooses to trade with.
Through this FTA, the UK is trying to get more opportunities in the telecommunication, legal, and financial services sectors of the Indian market. Whereas India is looking forward to liberalising the migration policy for its skilled workers. The UK is also insisting India to lower its tariffs on whiskey and automobiles.
Only time will tell how this FTA will turn out to be in reality. For Now, it seems like a good agreement for both nations.
