There are no strict deadlines anymore to clinch a Free Trade Agreement (FTA) with the UK but India is aiming to conclude negotiations as early as January, a government source told Moneycontrol.
India has been working on a FTA with the UK for over 21 months now and has missed the original deadline of Diwali 2022 to sign the deal.
According to the source, Indian authorities are looking to iron out all differences and close talks well ahead of general elections in the country. India is set to hold polls around April-May 2024 to elect a new government at the Centre.
Also Read | India-UK FTA: More liberal 'rules of origin' could lead to inequitable deal with EU, says source
India’s intent to conclude negotiations for the highly-anticipated trade deal with the UK months before polls is seemingly an attempt to ensure there are no pauses in exchanges between the two sides. General elections in the UK also have to take place before January 2025 and there are expectations that it might be conducted earlier than later within the stipulated timeframe.
India's Commerce ministry did not respond to an e-mail seeking comments till the time of publishing the story.
Progress in talks
Some of the chapters pertaining to rules of origin, London’s demand for tariff concession on electric vehicles, and services are yet to be finalised, the person said, adding that issues surrounding origin rules are almost settled.
The 'rules of origin' provision prescribes minimal processing that should happen in the FTA country so that the final manufactured product may be considered as goods originating from that country.
There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights. Joint Secretary Nidhi Mani Tripathi, India's Chief Negotiator for the UK FTA negotiations on November 15 said that there have been "continuous exchanges at all levels" to iron out differences and the majority of the chapters are either closed or at the advanced stage of negotiations.
Before the elections
The UK-India Business Council (UKIBC) on November 20 said the FTA negotiations between the two sides should conclude before the general elections due in both nations. UKIBC Managing Director Kevin McCole said that though the election date in the UK has not yet been fixed, the polls may be held between May and November 2024. There is a risk that talks may have to pause till the elections in India and the UK are over, he added.
Also Read | UK-India Business Council for early conclusion of FTA negotiations
So far 13 rounds of talks have been concluded between the two countries on the free trade deal. The UK is India’s fifth largest export destination.
On November 13, External Affairs Minister S Jaishankar said he hoped India and the UK would find a "landing point" on the FTA which will work for both the countries.
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