The fourteenth round of negotiations for a free trade agreement (FTA) between India and the UK closed on Friday, just before the anticipated announcement of the general election schedule by the Election Commission on Saturday, news agency PTI reported. According to UK officials briefed on the talks, this was anticipated as India enters election campaign mode, and the next formal trade talks can only resume after the Lok Sabha polls are completed.
The FTA discussions, which commenced in January 2022, aim to achieve an "ambitious" outcome for bilateral trade, currently valued at around GBP 38.1 billion annually according to official statistics from last month.
“We anticipate that while some talks might happen between rounds, the next round of negotiations will take place after the Indian elections,” official sources in the UK were quoted as saying by PTI in its report.
“Neither side is walking away from talks. It's just that we don't have what we need yet to finalise a deal that meets our joint ambition across goods, services and investment. We're very proud of the track record we have and how far we've been able to come with this trade deal so far. Negotiators have worked really hard in the past few years and we've managed to get a lot of chapters closed,” the sources said.
The development comes after a telephone conversation between Prime Minister Narendra Modi and his UK counterpart, Rishi Sunak, earlier this week, during which both leaders reaffirmed their dedication to "securing a historic and comprehensive deal" and stressed the significance of achieving an "ambitious outcome".
“The UK and India are continuing to work towards an ambitious trade deal. Whilst we don’t comment on the details of live negotiations, we are clear that we will only sign a deal that is fair, balanced and ultimately in the best interests of the British people and the economy," a UK Department of Business and Trade spokesperson was quoted by PTI in its report.
Last week, Commerce and Industry Minister Piyush Goyal informed PTI during an interview in New Delhi that securing long-term advantages for the economy were paramount in such FTA negotiations and emphasised India's pursuit of a "balanced, fair and equitable" agreement.
His UK counterpart, Secretary of State for Business and Trade Kemi Badenoch, remarked during a trade conference in London that although a trade deal with India before the country's general elections is "possible", Britain does not wish to use it as a deadline.
“The bigger the country, the more complex the trade agreement. And also, the more different the economy is, the harder it is to negotiate… India is still very protectionist, where we are very, very liberalised,” Badenoch was quoted by PTI in its report.