Indian Prime Minister Narendra Modi and his British counterpart, Rishi Sunak, held a conversation on Tuesday, March 12th, 2024. The discussion centered around achieving an “early conclusion” of the ongoing negotiations for a Free Trade Agreement (FTA) between the two nations.
Prime Minister Modi took to social media to share the news, stating he had a “good conversation” with Sunak. They reaffirmed their commitment to strengthening the existing “Comprehensive Strategic Partnership” and working towards a mutually beneficial FTA. This sentiment was echoed in a press release issued by the Indian government.
The press release highlighted the positive assessment made by both leaders regarding progress towards finalizing the FTA. It further emphasized their commitment to strengthening the “Comprehensive Strategic Partnership” established between India and the UK.
The discussion wasn’t limited to trade. The leaders also expressed satisfaction with the advancements made under the “Roadmap 2030,” a collaborative framework guiding cooperation in areas like trade, investment, defense, security, and emerging technologies.
The press release additionally mentioned that the Prime Ministers exchanged greetings in light of the upcoming Holi festival and discussed developments of mutual interest on a regional and global scale.
Background on the India-UK FTA Negotiations
Negotiations for the India-UK FTA began in January 2022 with the goal of significantly boosting the existing $36 billion bilateral trade relationship. So far, 13 rounds of negotiations have taken place, with the most recent occurring between September 18th and December 15th, 2023. The 14th round was originally scheduled for January 2024.
Discussions during the negotiation rounds have covered complex issues related to trade in goods, services, and investments. Both sides have employed a combination of in-person and virtual meetings to move the process forward.
Bilateral Trade on the Rise
It’s worth noting that India and the UK have already witnessed an increase in bilateral trade. The figures grew from $17.5 billion in 2021-2022 to $20.36 billion in 2022-2023. This growth highlights the potential economic benefits of a finalized FTA.
Recent Developments in Free Trade Agreement
The push for a speedy conclusion of the FTA comes on the heels of India signing a separate $100 billion Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA) on Sunday.
While India pursues various trade deals, Prime Minister Modi has hailed the TEPA as a “watershed moment” and a “win-win situation” for all involved nations. India has previously signed trade agreements with several other countries, including Sri Lanka, Bhutan, and ASEAN (Association of Southeast Asian Nations).