October 18, 2022
2 mins read

India not to rush into FTA with UK

Sources in New Delhi said that India will exercise “extreme caution” to ensure that the trade agreement is fruitful for both countries ..writes Mahua Venkatesh

India will go into a trade pact with the UK only if it is mutually beneficial. While UK in the post Brexit phase is looking to expedite the inking of the proposed free trade agreement (FTA) with India, New Delhi will weigh the pros and cons carefully after British Home Secretary Suella Braverman damaging statement that Indian migrants make up for the “largest group of people who overstay” in the country.

The Telegraph said that the British want Indian trade.  “But it doesn’t want Indians,” it added.

British Prime Minister Liz Truss has been eager to ink the FTA. Truss, who was earlier International Trade Secretary under former PM Boris Johnson signed off on the India-U.K. Enhanced Trade Partnership (ETP), which laid the foundation for the negotiations.

Several non-trade issues related to labour, government procurement, environment besides visa regime under the Migration and Mobility pact could also come up as challenges to the ongoing negotiations.

India as part of the pact, among other things, sought greater access to its skilled workers.

Sources in New Delhi said that India will exercise “extreme caution” to ensure that the trade agreement is fruitful for both countries even as British foreign minister James Cleverly quickly jumped into the fray as a damage control exercise.

“We do want to have an even stronger, and it’s strong already, but an even stronger trading relationship with India,” he said.

“We must carefully weigh all pros and cons before signing the agreement. Seemingly there doesn’t seem to be much advantage in terms of trade in goods, and we also have to be sufficiently cautious about non-trade issues, and also the fact that we must make them agree to relax norms for movement of natural persons…. we must remember that the earlier FTAs that were signed have not borne fruit,” Ashwani Mahajan, national co-convenor of Swadeshi Jagran Manch told India Narrative.

India, already irked by Britain’s protectionist policy for its steel industry, has lodged an objection with the World Trade Organisation.

In November 2020, India exited the much hyped Regional Comprehensive Economic Partnership (RCEP), saying that the agreement would be detrimental to the Indian manufacturing sector as it would have to face stiff competition with a surge in imported goods.

While in the past, India entered into several free trade agreements, including one with the ASEAN (Association of Southeast Asian Nations) block, the deals have not been successful from India’s point of view with increased imports.

Commerce and Industry Minister Piyush Goyal has reiterated that trade agreements between countries must be “fair and balanced”.

ALSO READ: DefExpo 22 to be exclusively for Indian firms

Previous Story

Congress presidential poll sees 96% turnout

Next Story

India offers operational, cyber security training to Philippines military

Latest from -Top News

Modi Eyes Trade Deals in Maldives

PM Modi will arrive in Maldives on July 25 which would be the second and final leg of his two-nation visit, following the visit to the United Kingdom, starting Wednesday….reports Asian Lite

Russia Strikes Back at EU

The Council of the European Union approved the 17th and 18th packages of sanctions on Russia on May 20 and July 18…reports Asian Lite News Russia has significantly expanded its entry ban

PM Modi Due in UK

PM Modi’s visit to the UK, scheduled for July 23–24, comes at the invitation of British counterpart Keir Starmer and will be his fourth trip to the country….reports Asian Lite News Prime

Victory First, Then Peace?

Katz stressed the importance of meeting the war’s goals as set, primarily the return of all Israeli hostages and the surrender of Hamas….reports Asian Lite News Israeli Defence Minister Israel Katz said

US Brings Up Old Claim, India Pushes Back

US Raises Trump’s India-Pakistan Claim at UN; India Reaffirms Bilateral Stand…reports Asian Lite News The US brought President Trump’s May claim of resolving the India-Pakistan conflict to the Security Council, but New
Go toTop

Don't Miss

India, Japan to strengthen defence cooperation

Japan’s Defence Minister Nobuo Kishi called it “a serious problem

India seriously probing death of kids, Jaishankar tells Gambia

The World Health Organisation had issued an alert on four