As campaigning for Thursday's general election in the UK enters the final lap, the country could strike a free trade agreement with India, irrespective of whether the ruling Tories or the Opposition Labour come to power.
The efforts have been made from both sides towards strengthening the already existing bilateral trade partnership of $38.1 billion. However, the negotiations have been slow and are presently halted in the fourteenth round due to India's phased general election followed by Britain's own political transitions.
Formalised in January 2022 under the premiership of Boris Johnson, the FTA talks have been through a period of political instability, passing briefly from Liz Truss's tenure to Rishi Sunak to become Britain's first Prime Minister of Indian descent.
"We will finalise a free trade agreement with India, alongside a deeper strategic partnership on technology and defence," reads the Conservative Party manifesto, spelling out the British Indian leader's vision.
It also represents Scotland's interests, and in particular, it argues for the elimination of duties on Scotch whisky with the US and promotes extensive tariff reductions in India through current FTA negotiations.
The Labour Party, on its part, has been keen to emphasize that it is more than willing to take the FTA forward and has laid the blame at the doorstep of the ruling party for failing to stick to its Diwali deadline in 2022—"Many Diwalis have come and gone without a trade deal and too many businesses have been left waiting " said David Lammy, the Labour Party's shadow foreign secretary while addressing the India Global Forum here in London last week.
"My message to [Finance] Minister Sitharaman and [Trade] Minister Goyal is that Labour is ready to go. Let's finally get our free trade deal done and move on," he said.
The commitment is replicated in Labour's manifesto which says, "We will seek a new strategic partnership with India, including a free trade agreement, as well as deepen cooperation in security, education, technology, and climate change."
However, Lord Christopher Fox, the Liberal Democrat peer in the International Agreements Committee of the House of Lords, has raised some red flags over evident challenges to consummate the FTA.
It is in this light that the UK-India Business Council has also called for early conclusion of the FTA negotiations between the two countries, enumerating many other benefits which would emanate from the agreement in the form of economic growth, productivity gains, and expansion in private sector investments.They urged the UK government to make the finalization and ratification of the FTA priority businesses, stressing that these trade engagements would further strengthen bilateral cooperation in the areas of defense, security, and fighting climate change.
Indian High Commissioner to the UK Vikram Doraiswami said on tariffs and visa regulations that India was committed to deepening the scope of the FTA regarding goods and services. "Visas are not in the core area of discussion, but easy stipulations for temporary transfers under GATS Mode 4 are a must," he said.
Briefly, both political parties and business houses are asking for an agreement on a comprehensive UK-India FTA to ensure greater economic cooperation while trying to assuage some of the emerging bilateral issues.
Read also | India Joins Global Citizen Astronaut Initiative with SERA and Blue Origin
