New Delhi: Prime Minister Narendra Modi on Tuesday spoke to his British counterpart Prime Minister Rishi Sunak during which they reviewed the bilateral strategic partnership and discussed the need for an "early conclusion" of the free trade agreement (FTA) between both countries. India and the UK have decided to speed up talks on the free trade agreement and are hoping for an early conclusion.
"Had a good conversation with PM Rishi Sunak. We reaffirmed our commitment to further strengthen the bilateral Comprehensive Strategic Partnership and work for early conclusion of a mutually beneficial Free Trade Agreement,” Modi posted on X.
The talks for having the FTA between both countries have gained significant momentum in the last couple of years. India and the UK launched the talks for a free-trade agreement (FTA) in January 2022, to conclude talks by Diwali (October 24, 2022), but the deadline was missed due to political developments in the UK.
Meanwhile, the UK government in an official release said, "The leaders welcomed the thriving partnership between the UK and India and discussed recent progress on Free Trade Agreement negotiations. They agreed on the importance of securing a historic and comprehensive deal that benefits both countries. The Prime Minister reiterated the importance of reaching an ambitious outcome on goods and services."
"They agreed to remain in close contact and looked forward to further progress on trade talks," it added.
In an exclusive interview with ABP Live, Richard Heald, Group Chair, UK-India Business Council, had earlier said that the proposed UK-India FTA will help India diversify its sources for defence equipment, thereby boosting the Narendra Modi government’s ‘Make In India’ drive in defence and aerospace sector.
"There is currently no timeline put on the negotiations, but the signs are very positive. Both negotiating sides are committed to arriving at a deal that supports businesses and prosperity in both countries,” Heald told ABP Live.
There are 26 chapters in the agreement, which include goods, services, investments, and intellectual property rights. The Indian industry is demanding greater access for its skilled professionals from sectors like IT, and healthcare in the UK market, besides market access for several goods at nil customs duties.
On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, automobiles, lamb meat, chocolates, and certain confectionary items. Britain is also looking for more opportunities for UK services in Indian markets in segments like telecommunications, legal, and financial services (banking and insurance).
India on Sunday signed an FTA with the four-nation European Free Trade Association (EFTA) after 16 years of negotiations. EFTA members are Iceland, Liechtenstein, Norway, and Switzerland.
Under the deal, the four European countries will encourage the private sector to invest $100bn in India over the next 15 years.
India is also negotiating an FTA with the 27-nation bloc European Union.