PM Modi might go to the UK in October as both parties work on an FTA

 Prime Minister Narendra Modi's journey to London next month to sign a bilateral free trade agreement (FTA) between India and the UK is being finalised, according to persons with knowledge of the situation.

New Delhi : Prime Minister Narendra Modi's journey to London next month to sign a bilateral free trade agreement (FTA) between India and the UK is being finalised, according to persons with knowledge of the situation.

             There are only a few problems left to be resolved after five rounds of formal negotiations for the FTA between the two parties. The leaders of the two nations have stated that they hope to complete the agreement by Diwali, which is anticipated to be observed on October 24.

                        According to an official with knowledge of the situation, India and the UK are hopeful that the FTA would be signed before Diwali by the trade ministers in the presence of the Indian and British PMs.

          The person noted, on condition of anonymity, that a decision regarding the logistics of the visit is anticipated by the first week of October.

             People involved with the planning on both sides indicated that the visit, if it proceeds, will likely take place around the time of Diwali and will be capped by the signing of the FTA. The issue has not been the subject of any public notification from either nation. Emails sent to the PMO and the ministry of commerce went unanswered.

             Chapters of the FTA related to autos, mobility, and migration are among the concerns that the two sides have not yet resolved, according to the persons. They stated that the British side has provided provisions on immigration and mobility that are comparable to those in the FTA that the UK and Australia concluded in December 2021. The agreement between the UK and Australia permits British companies to employ Australian specialists in a number of fields, including engineering and architecture. According to the sources, the Indian side has not yet responded to this offer.

         There is widespread agreement on 26 chapters, according to another official. He remarked, on the condition of anonymity, "Both partners respect the sensibilities of each side and modify accordingly."

           According to the persons, the two parties are currently holding fast-track meetings to resolve the outstanding concerns by early October.

          The Indian side has prioritised improving the terms for professional and student mobility as well as increasing exports in labor-intensive industries like leather, textiles, jewellery, processed agricultural products, marine products, pharmaceuticals, and health care.

           The UK is considering lowering the tariffs on vehicles and whisky as well as opening up more access to digital and legal services.

             According to BVR Subrahmanyam, secretary of commerce, the India-UK free trade agreement is "very much on schedule." Our fingertips are touching, he continued. We won't be late for the Diwali deadline. You have my word.

          Liz Truss, the new prime minister of the United Kingdom who replaced Boris Johnson earlier this month, hopes to highlight the signing of the Free Trade Agreement as one of her most significant early achievements. There are allegedly few chances of a trade agreement being reached with the US anytime soon, therefore Truss disregarded concerns from the UK department of international trade about moving through with the FTA with India, according to the sources.

              According to the sources, the FTA is anticipated to increase UK exports to India to £16 billion annually by 2035, representing a substantial victory for the British side.

                  Truss has promoted closer commercial and strategic connections with India throughout her previous tenures as the foreign and international trade secretaries, respectively. On behalf of the Boris Johnson administration, she had approved the India-UK Enhanced Trade Partnership in May 2021.

              An important business roundtable with influential businesses is anticipated as part of Modi's upcoming visit. The two sides will likely discuss economic matters as well as a new agreement for enhanced defence and security cooperation, which is one of the five pillars of the India-UK 2030 Roadmap, which was finalised in 2021.

             In order to strengthen security ties and promote armed forces cooperation, the two nations will "finish a set of framework documents, including Logistics and Training MoUs and Grey and Dark shipping information sharing agreements," according to the 2030 Roadmap.

        After leaving the European Union (EU), the UK has been eager to fast finalise trade agreements with significant economies, such as India, which recently overtook Britain as the fifth-largest economy in the world.

          With 69 nations and the EU, the UK has signed agreements. This year, India has quickly concluded trade agreements with Australia and the United Arab Emirates, and it is currently in negotiations with the EU, Canada, and other countries.