Samajho's Android app | Samajho's IOS app | Youtube Channel | Telegram Channel | Instagram Channel
PROSPECTS OF INDIA-BRITAIN FREE TRADE AGREEMENT
What the article is about?
- Talks about the prospects of India-Britain Free Trade Agreement
Syllabus: GS-II International Relations; Groupings and agreements involving India
India-Britain FTA :
- Recently, India and the UK have launched the formal Free Trade Agreement (FTA) negotiations, that both countries envisage concluding by the end of 2022.
- Both countries agreed to an early harvest scheme or a limited trade agreement to lower tariffs on a small set of goods apart from easing rules for select services.
- Further, they agreed to avoid “sensitive issues” and focus on areas where there is more complementarity.
- The agriculture and dairy sectors are considered sensitive sectors for India in trade talks.
- Also, a target of doubling the trade between India and the United Kingdom (UK) by 2030 has also been set.
Prospects:
- A U.K.-India trade agreement will stimulate growth and employment in both countries.
- A trade deal helps diversify supply chains by making it easier and cheaper for more businesses to do business across borders.
- Increasing Exports of Goods: Trade deals with the UK could boost exports for large job-creating sectors such as textiles, leather goods, and footwear.
- India is also expected to register a quantum jump in the export of Marine Products through the recognition of 56 marine units of India.
- Mutual Recognition Agreements (MRAs) on Pharma could provide additional market access.
- Strategic Advantage: The UK is a permanent member of the UN Security Council, and one of the strategic partners of India.
- Strengthening bonds with the trade would seek the UK's support at global issues like a standoff with China in the Ladakh sector of the Line of Actual Control (LAC) and claim for a permanent seat at UNSC.
India-UK relations:
- India and the UK are vibrant democracies, with a partnership built on our shared history and rich culture.
- The diverse Indian diaspora in the UK, which acts as a “Living Bridge”, adds further dynamism to the relations between the two countries.
- The UK is one of the largest investors in India, among the G20 countries.
- There are nearly 600 U.K. companies in India employing more than 3,20,000 people.
- Similarly, India is already a big investor in the U.K. — especially in dynamic sectors such as fintech, electric vehicles and batteries
>Early Harvest Agreements:
- Early harvest agreements are used to open up bilateral trade between two countries on a restricted list of goods and services, primarily as a frontrunner to clinching a more comprehensive FTA.
