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Source: The post is based on the article “India-UK FTA talks face deadlock over data: Report” published in The New Indian Express on 9th October 2022.
What is the News?
The Diwali timeline for an FTA was announced enthusiastically by the former prime minister of the UK during his visit to India. But the Diwali draft completion deadline was not achieved due to deadlock in the final stages of the India-UK free trade agreement (FTA) negotiations.
About India-UK FTA negotiation
| Read here: India, UK aim to launch FTA negotiations by November 1 |
What are the challenges in finalising India-UK FTA?
According to the UK’s Department for International Trade (DIT), any FTA would be agreed upon only if it meets the UK’s interests. But the UK has “reservations” over India being offered some sort of “open borders” visa concessions.
On the other hand, data localisation and UK companies being allowed to bid for Indian government contracts are among the issues causing a possible deadlock in the final stages of the India-UK free trade agreement (FTA).
Negotiations on key issues of mobility/migration and tariffs are expected to continue towards a non-time-bound second phase of the agreement.
| Must read: India – UK Free Trade Agreement (FTA) | Timeline |
What is the potential of the India-UK FTA?
According to official UK government data, India-UK bilateral trade currently stands at around GBP 24.3 billion a year and the aim is for that to be at least doubled by 2030. The FTA will aid in such doubling.
