NEW DELHI: Prime Minister Narendra Modi had a conversation with British Prime Minister Rishi Sunak on Tuesday, with the two leaders speaking about strengthening bilateral trade and early conclusion of the Free Trade Agreement (FTA).
"Had a good conversation with PM Sunak. We reaffirmed our commitment to further strengthen the bilateral Comprehensive Strategic Partnership and work for early conclusion of a mutually beneficial FTA," said PM Modi.
This conversation took place two days after India inked a trade deal with the EFTA (European Free Trade Association) which comprises four countries – Switzerland, Norway, Iceland and Liechtenstein. This FTA has spoken about investments worth $100 billion and creation of one million direct jobs within the next 15 years. India had earlier signed an FTA with UAE in February 2022, followed by another with Australia in April the same year.
While there has been speculation on the India-UK FTA concluding before election dates are announced in India, it hasn’t happened yet as some critical issues are yet to be resolved.
It may be recalled that negotiations for the India-UK FTA began in January 2022 and the then British Prime Minister Boris Johnson had spoken about a Diwali deadline for the conclusion of the deal. However, it got pushed and even though many rounds of negotiations have happened, there are roadblocks to be cleared.
The issues where the two nations are stuck include British negotiators wanting tariff concessions for alcohol and automobiles in the Indian market while India wants greater mobility for its professionals in the UK.
