India-UK FTA: The long-awaited Free Trade Agreement (FTA) between India and the UK may soon become a reality. Rishi Sunak, the Prime Minister of United Kingdom, is determined to ensure that this vital agreement comes to fruition during his upcoming visit to India. This visit holds significant promise for both nations and their trade relations.
In a remarkable turn of events, the UK Prime Minister is poised for his second consecutive visit to India, following his attendance at the G20 summit. Notably, during this visit, he may even have the opportunity to witness the much-anticipated cricket match between India and England.
As media outlets, including The Business Line, have reported, the success of these talks’ hinges on the extent to which remaining differences can be minimized. The fewer the remaining obstacles, the higher the likelihood that the India-UK FTA will be solidified during Sunak’s visit.
So, welcome everyone, and join us as we explore the reasons behind the multiple delays in the India-UK FTA, and how it has the potential to reshape the economic partnership between India and the UK for years to come.
An important move pending for years
In a significant development, India and the United Kingdom are on the verge of finalizing a much-anticipated free-trade agreement (FTA). A recent report by Economic Times indicates that the formal signing of this pivotal India-UK FTA deal is expected to take place by the end of October 2023. This represents a remarkable step forward in the economic collaboration between the two nations.
British Prime Minister Rishi Sunak has consistently emphasized his commitment to strengthening the ties between India and the UK. His dedication extends across various sectors, including the FTA, which holds the promise of fostering robust economic partnerships.
Also read: India-UK FTA Talks: On or Off? The Inside Scoop on the Latest Developments
The scope of this agreement is vast, and its impact on trade relations is substantial. As per official figures from the UK Department for Business and Trade (DBT), bilateral trade between the UK and India reached an estimated 36 billion pounds in 2022. This substantial trade volume underscores the significance of this impending India-UK FTA.
The recent round of negotiations for the FTA between the UK and India, led by a 30-member UK delegation, commenced with the goal of resolving any remaining issues. This crucial step aims to pave the way for both countries to conclude the talks expeditiously.
However, one may wonder why it has taken the UK so long to make the final push toward an FTA with India, especially given that the idea was first conceived back in 2020. The delay primarily rests with the UK itself, owing to its inconsistent policies concerning India. These policy shifts have made the prospect of an FTA with India exceedingly challenging, if not seemingly impossible.
To grasp the context, negotiations began in January of the previous year with an initial anticipation that the FTA would be concluded by Diwali. Unfortunately, political instability in the UK led to protracted negotiations. Matters were further complicated following the controversial statement made by Suella Braverman, the UK’s Home Secretary, who expressed opposition to the FTA. She asserted that such an agreement would potentially lead to a surge in Indian migration to the UK, raising concerns about visa overstays.
Subsequent to her resignation and Rishi Sunak’s ascent to power, there was renewed hope for the FTA. Yet, challenges persisted, with the Khalistani radical anti-India movement once again emerging as a barrier to progress.
The situation escalated when Khalistani extremist Amritpal Singh was arrested in April 2023, triggering a wave of unrest among Khalistani supporters, who attempted to vandalize the Indian High Commission. These developments cast a shadow over the FTA discussions. Presently, although challenges persist, the current administration under Rishi Sunak is striving not to further antagonize India in the name of appeasement.
Two targets with one stone
The true intentions of Rishi Sunak in fostering stronger ties with India remain a matter for time to unveil. However, if we scrutinize his current actions, it becomes evident that he is not inclined to jeopardize relations with India.
Sunak’s amicable relations with Canada, particularly with Prime Minister Justin Trudeau, are worth noting. Nevertheless, it is clear that Sunak’s United Kingdom has opted not to support Canada in its confrontations with India. This decision has implications, and it’s not only the Khalistani forces but also the Canadian administration that may be disappointed with Sunak’s approach. As it is, they are in the bad books of the Modi administration, thanks to Justin Trudeau and his nonsensical approach to diplomacy.
In the grand scheme of international diplomacy, the United Kingdom, despite its rich history and perceived influence, currently finds itself in a precarious position. The truth is, the UK simply cannot afford to incite tensions with India at this juncture.
While it holds true that the Free Trade Agreement (FTA) would be mutually beneficial for both countries, it’s also a reality that the UK stands in greater need of it than India. This asymmetry underscores the urgency for the UK to act swiftly. Perhaps, this realization will facilitate smoother FTA negotiations in the near future. However, the broader message to the UK is unambiguous – action must be taken promptly.
The imperative for the UK government lies not only in the economic domain but also in addressing diplomatic tensions that are intertwined with trade talks. Above all, the UK is duty-bound to take resolute measures to combat Khalistani terrorist organizations. The onus is on the UK to act decisively in curbing this threat, for failure to do so could jeopardize not only the ongoing negotiations but also the fundamental fabric of bilateral relations.
Also read: Trudeau writes his political and economic epitaph by withholding the India FTA
For the UK, the need for the FTA with India is more pressing than ever, and time is of the essence. While the negotiations continue, the UK must not lose sight of the larger picture – that maintaining cordial diplomatic relations is as vital as fostering economic ties. The UK’s commitment to combatting Khalistani extremism is a critical component in this equation, and its resolve in this matter will have far-reaching consequences. As negotiations progress, the true nature of the India-UK relationship will be shaped by the actions of its leaders.
The impending FTA between India and the UK holds immense potential for both nations. As the negotiations approach their conclusion, it remains to be seen how the two countries will navigate the remaining challenges and seize the opportunity to enhance their economic ties.
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