India-UK FTA talks to resume from February 24
India and the UK are all set to resume the talks for the proposed free trade agreement from February 24 amid the bilateral trade between two countries is increased to $21.34 billion in 2023-24 from $20.36 billion in 2022-23. The free trade agreement is aimed to boost bilateral trade and investments between both the countries by either eliminating or significantly reducing customs duties on the majorly traded goods between them and further easing norms for promoting trade in services and bilateral investments.
On the Indian side, industries are demanding greater access for its skilled professionals from sectors like IT and healthcare in the UK market, apart from the nil customs duty on for several goods. On the other hand, the UK is looking for substantial cut in import duties on goods such as scotch whiskey, electric vehicles, lamb meat, chocolates and certain confectionary item. It also seeking more opportunities in Indian markets in segments such as telecommunications, legal and financial services.
The talks for the agreement may get an impetus as Finance Minister Nirmala Sitharaman on February 01, 2025 proposed to raise the foreign investment limit to 100 per cent in the insurance sector as part of new-generation financial sector reforms. Furthermore, there is ongoing negotiation a bilateral investment treaty (BIT), which includes goods, services, investments and intellectual property rights, between two countries.
