UK-India Free Trade Negotiations
Negotiations between the UK and India are ongoing and the UK Government had spoken publicly about wanting a trade deal to be agreed ahead of Diwali in October 2022. This deadline was missed. As of August 2023, reports are that negotiations for a UK-India FTA are reaching their final stages. However, there appear to be some stumbling blocks. The UK wants better market access in India for exports such as scotch whiskey and cars, and for services companies. India in turn wants better visa schemes for Indian workers to relocate to the UK - a contentious issue particularly considering the present narratives from the UK Home Office regarding immigration.
Commission Sessions on India Negotiations
By total GDP, India is the largest country which the UK was actively negotiating with at the time of the meeting . Witnesses provided analysis on the UK government’s approach, what benefits are expected from the deals or had already been delivered, and how different parts of the UK economy were likely to benefit.
Evidence taken from:
Pallavi Bhajaj, Trade and Digital Economy Expert
Professor Sangeeta Khorana, International Trade Expert and Professor of Economics, Bournemouth University
Tony Matharu, Chairman of the Asian Business Association
The Rt Hon Lord Bilimoria of Chelsea CBE DL FCA, Founder and Chairman of Cobra Beer, President of the Confederation of British Industry, Chancellor of the University of Birmingham, President of the UK Council for International Student Affairs (UKCISA)
The Commission took evidence on the state of the UK-India Free Trade Agreement, focusing on potential sticking points to a deal and the potential human rights implications once a deal is secured.
Evidence taken from:
Mohan Kaul, President, Indian Partnership Forum
George Holt, Senior Researcher, Trade Justice Movement
Amrita Saha, Research Fellow, Institute of Development Studies
UK-India Trade Analysis
Witnesses suggested there are no red lines in the deal and that both sides are willing to make concessions as both sides are desperate to get a deal over the line.
The deal is ambitious and there are tricky areas to negotiate, but talks have been collaborative and it’s not just been about India as a developing economy opening up to British access.
UK firms face higher tariffs in India than Indian firms in the UK, and UK firms face huge non-tariff barriers in India. These barriers are blocking billions in trade and development and the reduction of them are seen as a priority.
What level of ambition are the UK and India approaching this trade deal with?
Pallavi Bajaj suggested the deal is ambitious and there are tricky areas to negotiate. She added that negotiations have been collaborative and it’s not just been about India as a developing economy opening up to British access. She says that India wants to be seen as a data secure regime, and she thinks that both countries can find a mutually beneficial middle ground.
Tony Matharu suggested that there needs to be a grownup relationship between the two countries. He says this will be built over time, and that it’s very important for access to the UK to be granted to Indians in the same way it is granted to some citizens of Commonwealth nations.
Lord Bilimoria says that the disbanding of the UK-India roundtable is negative and that we need to move forward with business collaboration between the UK and India. Professor Khorana suggested the India-Australia deal should not be replicated in India-UK deal, as the India-Australia deal does not carve out access for public procurement.
UK-India Trade News
Relevant Sessions
