On January 13, 2022, UK government announced the launch of free trade agreement (FTA) negotiations with India.

Key Facts

• This move is being described as a golden opportunity, of putting British businesses at the front of Indian economy.
• FTA is likely to take UK’s historic partnership with India to the next level.
• With this FTA, sectors like Scotch whisky, financial services and cutting-edge renewable technology are set to benefit.
• India-UK FTA is believed to create huge benefits for both countries. It has the potential to boost bilateral trade by GBP 28 billion a year by 2035.
• The deal will also help in increasing the wages by GBP 3 billion across the UK.

First round of negotiations

The first round of negotiations is likely to start in January 2022 only. British government would make this round, UK’s quickest start of formal talks between negotiating teams.

What is an FTA?

Under the FTA, two trading partners significantly reduce or eliminate the import duties on maximum number of goods traded between them.