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UK-India free trade deal negotiations suspended
The most recent round of trade negotiations between the UK and India concluded without a breakthrough
14th round of India-UK FTA negotiations conclude / Image - X, RishiSunak
The 14th round of trade negotiations between the UK and India concluded without an agreement, prompting both parties to suspend discussions until later this year. Following two weeks of vigorous talks, the UK government concluded the latest round on March 15, acknowledging the inability to reach a consensus with Indian officials.
Despite initial optimism, ministers from both countries were unable to finalize a sought-after free trade agreement (FTA) before India's election campaign commences. A delegation, spearheaded by a senior UK government representative, visited Delhi at the onset of the previous week in an attempt to secure the deal.
Officials anticipate reconvening at the negotiating table in either May or June this year, to reach an agreement before the UK general election, provided it occurs no earlier than the autumn or winter months.
Notably, UK Prime Minister Rishi Sunak engaged in discussions with his Indian counterpart, Narendra Modi. The UK government has reportedly expressed a desire to finalize the FTA during this exchange. Both sides were on the brink of sealing a deal. However, UK officials indicated that India's stance on services and investment fell short of expectations.
A primary demand from the UK is access to the Indian market for the British services sector, which constitutes 80 percent of its economy. With a population of 1.4 billion, India is poised to become the world's third-largest economy by 2050.
India is known for its rigorous stance in trade negotiations. This week, the Modi government finalized a £79bn deal with the European Free Trade Association, comprising Norway, Switzerland, Iceland, and Liechtenstein. These talks spanned 16 years before reaching fruition.
Trade negotiations between the UK and India commenced in January 2022 under the leadership of former Prime Minister Boris Johnson.
Johnson had expressed his aspiration to conclude the deal "by Diwali" in October 2022. However, challenges persisted, particularly concerning visa arrangements, impeding the attainment of an agreement.
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