Sources in the Indian government have indicated that the proposed trade deal with the United Kingdom (UK) has been put on hold for the next few months. As the Model Code of Conduct (MCC) for General Elections is already in place in India, the next round of negotiations between the two countries is expected to take place in June.
Even as both sides remain hopeful of a fair and equitable deal, negotiations on contentious issues will have to be completed before the MCC comes into place in the UK, which is expected to go for elections in late 2024.
Last month, the Prime Minister’s Office (PMO) reviewed the progress of the India-UK FTA talks, which began on January 13, 2022, and kept getting delayed due to repeated changes in the UK's leadership. About 14 rounds of discussion were concluded, and 21 out of 26 policy areas were finalised by the end of 2023.
A delegation from the UK also visited India in January 2024. Even as negotiators from both sides engaged in rigorous talks on multiple fronts, several contentious issues kept the negotiations from being concluded.
Amidst a recession and opposition to immigration and outsourcing in the UK, India had sought increased access for its IT/ITeS professionals under the FTA. Meanwhile, the UK had sought duty concessions on imported cars and scotch whisky, which is being opposed by the Indian alcohol industry.
(Edited by : Pihu Yadav)
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