UK-India Trade Talks Expected to Stall Ahead of General Election, Hurdles Persist

GG News Bureau
New Delhi, 9th March. The latest round of trade negotiations between the UK and India appears unlikely to yield a breakthrough on major outstanding issues, signaling that an agreement may not be reached before India’s upcoming general election.

Sources familiar with the discussions revealed that UK officials returned from New Delhi without significant progress, citing remaining obstacles in goods, services, and investment sectors.

With India’s general election anticipated in April, Indian negotiators are reportedly constrained by time limitations, hindering their ability to address pending issues effectively.

Consequently, the 14th round of talks is expected to conclude without further discussions, with both sides aiming to reconvene post-election, as Prime Minister Narendra Modi’s Bharatiya Janata Party is poised for a third term victory.

In the UK, Prime Minister Rishi Sunak’s Conservative Party faces a considerable polling deficit against Keir Starmer’s Labour Party, potentially complicating the task of finalizing a trade deal.

Despite being touted as a significant post-Brexit prize, negotiations with India have encountered persistent challenges, ranging from visa policies to market access disagreements.

The failure to secure a deal with India adds to the setbacks experienced by the UK in its pursuit of new free-trade agreements, with talks paused with Canada earlier this year due to unresolved issues. Despite these hurdles, the UK government remains committed to pursuing an ambitious trade deal that benefits both nations, emphasizing fairness and balance in negotiations.

If successfully concluded, the trade agreement with India would mark a significant milestone, reflecting India’s growing appeal as an investment destination and its efforts to diversify supply chains away from China. Moreover, it could pave the way for a broader free trade deal with the European Union.

India’s proactive approach to enhancing trade relations aligns with its aspirations to bolster manufacturing capabilities and generate employment opportunities, particularly for its burgeoning youth population. The initiation of trade negotiations between the UK and India in January 2022 followed a commitment by both countries’ leaders to strengthen economic ties.

Despite the challenges, bilateral trade between India and the UK has shown steady growth, underscoring the mutual interest in deepening economic cooperation. As negotiations continue, both sides remain focused on achieving a comprehensive and mutually beneficial trade agreement.