India, UK Await Finalizing Trade Deal
(MENAFN) India and the United Kingdom are expected to conclude a long-anticipated free trade agreement (FTA) during Prime Minister Narendra Modi’s official trip to Britain this week, according to Indian press coverage.
The accord, which has been under negotiation for years, recently received formal approval from India’s cabinet, a news agency reported, quoting sources within the administration.
“We are working on the legal scrubbing and other last-minute work for the FTA,” stated Indian Foreign Secretary Vikram Misri on Tuesday.
The United Kingdom currently ranks as the sixth-largest investor in India, having committed a total of $36 billion in investments.
Conversely, India has made significant financial contributions to the British economy as well, with cumulative investments approaching $20 billion, based on official statistics.
Although the FTA discussions commenced in 2001, the process was delayed due to the UK’s push for “more favorable” terms, including reduced tariffs on exported goods to India.
Unnamed British government officials informed a newspaper last year that these requests were central to the holdup.
India is also aiming to secure a ‘double contribution convention pact’ as part of the agreement.
This arrangement would allow Indian IT professionals working in the UK to avoid paying social security taxes for a period of three years, effectively saving them around 20% of their income. Reports estimate that more than 60,000 workers would gain from this provision.
Among the key trade concessions, India will gradually decrease import duties on UK-produced whisky and gin—from 150% down to 75%, and eventually to 40% by the tenth year of the deal.
In addition, tariffs on car parts and other automotive products will be slashed from over 100% to 10%, though this reduction will be subject to a predetermined quota, as per the news agency.
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