India foreign secy: working on legal scrubbing, other last minute work that needs to be done on India-UK FTA

India foreign secy: working on legal scrubbing, other last minute work that needs to be done on India-UK FTA

India and the United Kingdom are nearing the final stages of their long-awaited Free Trade Agreement (FTA), with legal scrubbing and other last-minute preparations underway. The FTA, expected to be signed during Prime Minister Narendra Modi's visit to London, aims to significantly boost bilateral trade and ease professional mobility.

The agreement, which has been in negotiations for over three years, is anticipated to boost bilateral trade by £25.5 billion (US$34.13 billion) annually by 2040, according to British estimates [1]. The pact is expected to remove trade barriers and grant duty-free access to most goods, potentially doubling bilateral trade to $120 billion by 2030 [3].

The FTA includes provisions to reduce tariffs on a wide range of goods, including labor-intensive products like leather, footwear, and clothing. It also aims to liberalize services trade and ease the movement of professionals between the two countries [3]. The agreement includes visa commitments for various categories of professionals, such as contractual service suppliers, business visitors, and independent professionals like yoga instructors and chefs.

The UK's ratification process, which involves the Parliament, could take up to a year, while India's ratification, handled by the cabinet, could add another year. The FTA will not cover certain sectors, such as sugar, milled rice, pork, chicken, and eggs, to protect domestic industries [3].

The India-UK FTA is part of India's broader strategy to boost exports through bilateral deals with developed economies. Alongside the FTA, a social security agreement or Double Contribution Contributions Convention (DCC) has been agreed upon, ensuring that employees moving between the two countries will only pay social security contributions in one country at a time [3].

The FTA is also being accompanied by the finalization of a Bilateral Investment Treaty (BIT), further strengthening the economic partnership between the two nations.

The expected signing of the FTA is a significant milestone for both countries, signaling India's willingness to integrate more deeply with the global economy and engage with Western partners amid rising global trade tensions.

References:
[1] https://www.scmp.com/week-asia/economics/article/3319115/how-india-uk-trade-deal-could-shape-future-pacts-eu-and-us
[2] https://www.ndtvprofit.com/business/india-uk-fta-text-to-be-released-after-signing-us-trade-deal-still-under-negotiation-govt
[3] https://www.financialexpress.com/policy/economy/india-uk-likely-to-sign-fta-next-week/3918240/