Mint Quick Edit | An India-UK FTA at long last!
Summary
India and the UK clinched a free trade agreement just as it began to seem like an endless wait. It has many win-win aspects. Could 2025 turn out to be a year of trade optimism instead of gloom for India?India-UK trade relations have taken a big leap with the two countries finally striking a free trade agreement (FTA). On Tuesday, the prime ministers of both countries announced the conclusion of a deal for which talks had seemed endless, given a bunch of sticky issues.
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While the details will become clearer as the pact’s document is examined more closely, it reportedly includes lower tariffs on several products, automobile quotas and greater access to the UK for Indians on work and to Indian contracts for British firms. Whisky tariffs are to be reduced gradually. These and other changes will smoothen trade and business relations between the two countries.
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A bilateral investment treaty is also being negotiated, and once that’s done, both could look forward to a wide set of partnership benefits. Both New Delhi and London were especially keen to find common ground. India had opted out of a large Asian trade pact to focus on other markets, while the UK had quit the EU and needed to forge fresh ties with others. Both countries are also looking for bilateral deals with the US.
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If New Delhi can clinch one by year-end, it could make 2025 memorable for good news on trade rather than bad.
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