Broad consensus reached on tariffs on automobiles, whisky in India-UK FTA talks

In the ongoing Free Trade Agreement (FTA) negotiations between India and the United Kingdom (UK), government sources have indicated that a broad consensus has been reached on tariffs for automobiles and whisky. Both nations are targeting growth in GDP, trade, and employment, and the modalities for rules of origin are being worked upon, with agreement on broad principles already in place.

Speaking anonymously, a government official said that discussions are underway for product-specific rules, with 19 out of 26 chapters already closed. India has requested a long period of staggered duty reduction, and talks are also in progress with the Union Finance Ministry to finalize a Bilateral Investment Treaty (BIT).

Deep Kapuria, Chairman of the HiTech group of companies and past co-chair of B20 on digital economy & Industry 4.0, told CNBC TV18 that the UK was among the first countries to enter into a BIT with India in 1994. He mentioned that India replaced its existing BIT with several countries and adopted a new model draft BIT a few years ago. The UK is eager to establish a BIT with India to become one of the top 5 investors. Kapuria cautioned that while the UK seeks the opening up of India's public procurement market and free flow of data, India needs to exercise caution in these matters.