Union Finance Minister Nirmala Sitharaman on August 25 said that a Free Trade Agreement (FTA) with the UK is expected to be announced soon. The finance minister announced the development while addressing the B20 Summit in Delhi on August 25.
"We are continually making efforts for FTA with the UK, Canada, and EFTA countries along with the commerce ministry. The speed it is going now is this year we should conclude the agreement with FTA. FTA with European Free Trade Association also in the works," Sitharaman said while talking about FTAs.
EFTA includes Liechtenstein, Norway, Iceland, and Switzerland.
Sitharaman was speaking at the B20 Summit in Delhi on the need for diversified global supply chains in order to sustain economic growth in the next few years.
"We need to quickly diversify our supply chains. Well-functioning international markets with resilient and efficient supply chains are the ones that can help us sustain our growth. So, we need to cushion ourselves sufficiently against any shock that can happen...," Sitharaman said.
She went on to mention that Free Trade Agreements are key to diversifying supply chains and that India is soon expected to have FTAs with UK, Canada, and EFTA soon.
India and The United Kingdom have been in talks for a FTA since the last year, with then British Prime Minister famously saying that the FTA with India will be signed by the Diwali of 2022.
Earlier this week, UK Business and Trade Secretary Kemi Badenoch had said that India and Britain are “actively” discussing business mobility under the proposed FTA and the negotiations are now in the final stages.
The UK minister also said that overall visa liberalisation issues do not come under the ambit of trade pacts.
The UK minister said that both countries are working to accommodate issues with regard to bilateral investment treaty and business mobility so that it works for both the two nations.
The fifth round of negotiations is in progress between the two countries. Both countries are looking to iron out differences over investment treaties, rules of origin, intellectual property rights and other issues. Indian industry was pressing hard to get easy access for domestic professionals.
Earlier in some G20 meetings, members failed to come out with a communique due to differences over language on the Russia-Ukraine conflict.
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