A senior government official disclosed on Friday that outstanding matters concerning the proposed free trade agreement (FTA) between India and the UK will be addressed post the UK's general elections. These issues encompass various sectors such as electric vehicles, alcoholic beverages, and services.
Additional Secretary L Satya Srinivas from the Department of Commerce assured reporters that the unresolved aspects crucial for finalizing the deal would be tackled once the UK's general elections conclude on July 4.
Initiated in January 2022 to bolster economic ties, the India-UK FTA negotiations span 26 chapters covering goods, services, investments, and intellectual property rights. Bilateral trade between both nations escalated to USD 21.34 billion in 2023-24 from USD 20.36 billion in the previous fiscal year.
Regarding the India-EU trade pact, Srinivas mentioned that discussions are progressing positively, with the eighth round scheduled in Brussels from June 24-28. There's a noticeable shift in the EU's stance, showing more openness to India's perspectives.
On another front, discussions between India and the EU regarding the carbon tax, known as CBAM (Carbon Border Adjustment Mechanism), are underway. This tax is slated to commence on January 1, 2026, with Indian companies from carbon-intensive sectors already reporting emission data to the EU since October 1, 2023.
Moving to the FTA negotiations with Oman, progress is being made despite lingering concerns, particularly in the petrochemicals sector where Oman seeks duty concessions on products like polypropylene and polyethene.
Additionally, there is interest from the Gulf Cooperation Council (GCC) countries, including Oman, in an FTA with India. Talks are ongoing, with particular interest expressed by Saudi Arabia in a bilateral investment treaty (BIT) alongside a trade pact, although disputes resolution remains a key sticking point.
Economic analysts from GTRI have emphasized India's need to align its investment treaties with global practices to dispel negative perceptions and enhance its negotiation efficacy, especially as it aims to solidify its position as the world's third-largest economy.
Read also | April Sees India's Industrial Production Grow by 5%
Read also | CII Forecasts India's GDP Growth to Reach 8% in 2024-25
