India Safeguards Domestic Players’ Interests In Ongoing UK Trade Talks

London, 6th August 2023: India is actively safeguarding the interests of its domestic players during the ongoing negotiations for a free trade agreement with the UK. To protect its data-related issues and dairy sector, India has excluded specific demands made by Britain. Nevertheless, discussions are underway to potentially grant duty concessions in the automobile sector and certain confectionery items.

Currently, the negotiations have entered a crucial phase and are anticipated to be finalized either in October or November. Recent meetings between Commerce and Industry Minister Piyush Goyal, Commerce Secretary Sunil Barthwal, and senior British officials in London have provided a significant boost to the talks.

There is optimism for further progress during the meetings of trade ministers from India and the UK at the G20 trade ministers meeting in Jaipur. Fortunately, most of the issues between the two countries have been resolved, paving the way for potential agreements.

While duty concessions in the automobile sector have been extensively discussed with domestic players, the dairy sector remains a sensitive topic and remains untouched to protect local interests.

Both India and the UK, being major players in the services sector, are negotiating to ease norms in various areas such as IT, healthcare, accounting, education, medical practices, banking, insurance, legal, and telecommunications. The UK has expressed particular interest in sectors like banking, insurance, legal, and telecommunications.

Data localization norms in India have raised concerns for UK firms, but efforts are being made to find common ground on issues like investment treaties, intellectual property rights (IPRs), and rules of origin.

Nineteen out of 26 chapters in the free trade agreement have been finalized, and discussions on product-specific rules, value addition, and certification in the rules of origin chapters are currently underway. These provisions aim to prevent the dumping of goods and ensure a fair trade environment.

Bilateral trade between India and the UK has seen growth, reaching USD 20.36 billion in 2022-23. The primary exports include ready-made garments, textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, transport equipment, spices, machinery, instruments, pharmaceuticals, and marine products. Main imports include precious and semi-precious stones, ores and metal scraps, engineering goods, professional instruments, chemicals, and machinery.

In the services sector, the UK is a significant market for Indian IT services in Europe. Additionally, the UK has become a major investor in India, with USD 1.74 billion in foreign direct investment received in 2022-23.

The overarching goal of the negotiations is to reduce or eliminate customs duties on a wide range of goods traded between the two countries, promote trade in services, and encour

age investment flows.