{"id":217311,"date":"2022-12-06T20:27:32","date_gmt":"2022-12-06T14:57:32","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=217311"},"modified":"2022-12-07T08:28:50","modified_gmt":"2022-12-07T02:58:50","slug":"impacts-of-india-uk-fta-nothing-so-great-about-free-trade-with-great-britain","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/impacts-of-india-uk-fta-nothing-so-great-about-free-trade-with-great-britain\/","title":{"rendered":"Impacts of India-UK FTA: Nothing So Great About Free Trade With Great Britain"},"content":{"rendered":"\n<p><strong>Source<\/strong>: The post is based on the article\u00a0<strong>\u201cNothing So Great About Free Trade With Great Britain\u201d <\/strong>published in <b>The Times of India <\/b>on\u00a0<strong>6<sup>th<\/sup>\u00a0November 2022<\/strong>.<\/p>\n<p><strong>Syllabus<\/strong>: GS \u2013 2 \u2013 Bilateral, regional and global groupings and agreements involving India and\/or affecting India\u2019s interests.<\/p>\n<p><strong>Relevance<\/strong>: About India-UK FTA negotiation.<\/p>\n<p><strong>News<\/strong>: Recently the possibilities for India-UK free trade agreement have increased.<\/p>\n<h5>About India-UK FTA negotiation<\/h5>\n<table style=\"border-collapse: collapse; width: 100%;\">\n<tbody>\n<tr>\n<td style=\"width: 99.8647%;\"><strong>Must Read:<\/strong><\/p>\n<ul>\n<li><strong><a href=\"https:\/\/forumias.com\/blog\/india-uk-free-trade-agreement-fta-timeline\/\">India \u2013 UK Free Trade Agreement (FTA) | Timeline<\/a><\/strong><\/li>\n<li><strong><a href=\"https:\/\/forumias.com\/blog\/india-uk-aim-to-launch-fta-negotiations-by-november-1\/\">India, UK aim to launch FTA negotiations by November 1<\/a><\/strong><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h5>What will be the impact of the India-UK FTA on India\u2019s economy?<\/h5>\n<h6>Positive impacts of India-UK FTA<\/h6>\n<p>A study by the UK\u2019s department of international trade said that India-UK FTA could increase India\u2019s bilateral exports to the UK by \u00a310.6 bn, and that of the UK by \u00a316.7 bn.<\/p>\n<p>-India might witness a modest increase in its exports of goods and services, especially IT sector, to the UK.<\/p>\n<p>-With the UK\u2019s customs duties low in most sectors, Indian exports could make gains only in a few sectors, such as garments, leather products, gems and jewellery.<\/p>\n<h6>Negative impacts of India-UK FTA<\/h6>\n<p><strong>Inevitable job losses<\/strong> in those sectors where imports from the UK would displace domestically produced goods and services in India.<\/p>\n<p><strong>Reduction\/elimination of customs duties<\/strong> by India and opening of some services sectors, particularly financial services to UK.<\/p>\n<p>The FTA might <strong>curtail the ability of the Indian government<\/strong> to use policy instruments to boost the domestic production of goods and services. This is because, in India-UAE FTA, the government agreed to provide non-discriminatory treatment to UAE producers. India might agree to a similar demand from the UK also.<\/p>\n<p><strong>Not significant for Indian exporters<\/strong>: UK&#8217;s government procurement market already faces intense competition from countries such as the EU and US. So, it is unlikely that Indian exporters will make any significant gains in the UK government procurement market.<\/p>\n<p><strong>Challenge from the environmental aspect<\/strong>: The FTA could contain environment-related obligations that could hinder the Indian government&#8217;s efforts to low-carbon economy transition driven predominantly by domestic players.<\/p>\n<table style=\"border-collapse: collapse; width: 100%;\">\n<tbody>\n<tr>\n<td style=\"width: 100%;\"><strong>Read more: <\/strong><a href=\"https:\/\/forumias.com\/blog\/answered-there-are-good-economic-and-strategic-reasons-for-an-india-uk-fta-that-will-spell-many-opportunities-for-both-countries-critically-examine-the-statement\/\"><strong>India-UK FTA costs and opportunities<\/strong><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h5>What should India do before finalising India-UK FTA?<\/h5>\n<p><strong>Conduct a detailed and objective assessment<\/strong>: India should analyse the economic benefits and costs of the India-UK FTA. Especially the provisions relating to labour, environment, digital trade and IPRs \u2013 before moving forward in the negotiations.<\/p>\n<p>In conclusion, a meagre increase in India\u2019s exports of \u00a310.6 bn over a decade does not justify taking demanding commitments that impact India on many fronts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The post is based on the article\u00a0\u201cNothing So Great About Free Trade With Great Britain\u201d published in The Times of India on\u00a06th\u00a0November 2022. Syllabus: GS \u2013 2 \u2013 Bilateral, regional and global groupings and agreements involving India and\/or affecting India\u2019s interests. Relevance: About India-UK FTA negotiation. News: Recently the possibilities for India-UK free trade&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/impacts-of-india-uk-fta-nothing-so-great-about-free-trade-with-great-britain\/\">Continue reading <span class=\"screen-reader-text\">Impacts of India-UK FTA: Nothing So Great About Free Trade With Great Britain<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,10496],"class_list":["post-217311","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-times-of-india","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/217311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=217311"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/217311\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=217311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=217311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=217311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}