Rishi Sunak's Officials in Delhi to Push Forward India-UK Free Trade Agreement

UK Prime Minister's Officials in Delhi to Push Forward India-UK Free Trade Agreement

In an effort to expedite the negotiation process for the India-UK Free Trade Agreement (FTA), senior officials from British Prime Minister Rishi Sunak's team are currently visiting New Delhi. While neither government has officially confirmed the visit, sources suggest that the Modi-led administration is eager to finalize the FTA by the end of February 2024, ahead of national elections in both countries.

Election Year Dynamics

With both India and the UK heading into an election year in 2024, the urgency to finalize the FTA by the end of February is evident. The move is strategic for Sunak's electoral appeal, countering signs of anti-incumbency towards the ruling Conservatives.

"The deal is still very much on, and we think it is possible before both countries have their elections. Both sides are keen to get this done," stated an official closely associated with the negotiations.

Progress and Timelines

Initiated in January last year, the India-UK FTA talks have seen 13 rounds of negotiations. Former Prime Minister Boris Johnson initially set Diwali 2022 as the deadline. However, the current Sunak-led Tory government refrains from committing to firm timelines, given the deal's potential impact on the GBP 36-billion bilateral trading partnership.

"The UK and India continue to work towards an ambitious trade deal that works for both countries," affirmed a spokesperson for the Department for Business and Trade (DBT), emphasizing fairness, balance, and the best interests of both nations.

Recent Developments

External Affairs Minister S. Jaishankar confirmed the FTA's inclusion in the agenda during his recent UK visit. He expressed confidence in finding a "landing point that works for both of us" and acknowledged substantial progress.

UK Business and Trade Secretary Kemi Badenoch, while addressing a House of Commons committee, indicated proximity to completion. Piyush Goyal, India's Union Minister for Commerce and Industry, highlighted the closure of nearly 20 of the 26 chapters.

A Potential Game Changer for Bilateral Trade

The successful conclusion of the India-UK FTA is expected to significantly boost trade and economic cooperation between the two nations. This agreement could create new opportunities for businesses, promote investment, and generate jobs in both countries.

Conclusion

Sunak's team's visit to Delhi underscores the commitment of both India and the UK to finalizing the FTA. While challenges remain, the potential benefits for both economies and the political advantages for both leaders create a strong incentive to reach a successful conclusion before their respective elections in 2024.