North India Statesman
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Mumbai: India's free trade agreement with the United Kingdom (UK) has again been put on hold with the announcement of Lok Sabha elections in the country and now the agreement can be finalized only after the new government comes to power at the Centre, government sources said.
Trade talks between the two countries may continue even after the Lok Sabha elections are announced, as is already underway, but it is not clear whether the agreement will be signed or not. In such a situation, there is a possibility of finalizing the agreement during the tenure of the new government.
So far 14 rounds of talks have taken place between the two countries for a free trade agreement, but after the announcement of Lok Sabha election dates on Saturday, the talks will not progress in an interesting manner.
Detailed discussions have taken place between the two countries for the agreement and agreement has been reached on most of the issues. Negotiations for the trade agreement began in January 2022.
The size of bilateral trade between India and Britain currently stands at $38.10 billion. No country has backed down from talks. Prime Minister Narendra Modi and his British counterpart Rishi Sunak discussed the trade deal issue earlier this week and both the leaders expressed their commitment to the agreement.
In the agreement, both the countries are giving priority to the interests of their business and citizens. Sources further said that India is taking special care that domestic industries do not face any kind of competition.
Since India is a huge country compared to Britain, India has to protect the interests of its industries.
The agreement with the UK could prove beneficial for India to establish its presence in the EU markets. This agreement can be beneficial for market entry not only in Europe but also in some western countries.
