Major sectors like automobiles, pharma, and legal services under focus in final discussions
The India-UK Free Trade Agreement (FTA) has entered its final round of negotiations, with both sides expressing optimism about concluding the long-awaited deal within the next few weeks. Key areas being discussed include tariff reductions, market access for automobiles, pharmaceuticals, services, and legal cooperation.
🔹 Key Highlights of the India-UK FTA Talks
- ✅ Final Round of Talks: Discussions are being held in New Delhi with ministerial-level oversight.
- ✅ Automobiles & Spirits: The UK seeks lower tariffs on luxury vehicles and Scotch whisky; India seeks greater mobility for professionals.
- ✅ Pharma & Tech: India pushing for streamlined regulatory approvals for Indian pharmaceutical exports.
- ✅ Legal Services: Talks include potential mutual recognition of qualifications and cross-border legal practice.
- ✅ Digital Trade: E-commerce regulations, data localization, and IP rights included in digital trade chapters.
🤝 What’s at Stake
This FTA could be India’s first major trade agreement with a developed Western economy and a post-Brexit win for the UK. Bilateral trade stood at USD 20.36 billion in FY2024, and both sides aim to double this within five years.
Commerce Minister Piyush Goyal said the FTA would “unlock fresh investment and job opportunities across sectors.” His UK counterpart, Kemi Badenoch, noted that this deal is “strategically and economically critical.”
📈 Economic Impact Expected
If signed, the FTA is expected to:
- Increase India’s exports of textiles, electronics, and IT services
- Enhance FDI from UK firms in clean energy, defense, and education
- Boost India’s global trade standing ahead of elections and global summits
