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The final round of talks took place on 29th July.
The sixth round of talks is starting from December 12, the official said.
Trade in goods, including passenger vehicles, is one of the areas under negotiation, which began on January 13, 2022. In a free trade agreement, two countries either significantly reduce or eliminate customs duties on a maximum number of goods traded between them. The UK side is seeking duty concessions in the automobile sector.
Last month, Commerce and Industry Minister Piyush Goyal said the agreement was a high priority for both countries. He added that things are progressing well and will yield good results.
“We all know very well that it was progressing very quickly until we had a bit of a reversal due to political events in other countries… We have a stable government… in office now (in the UK) and I already have my I am in touch with the (UK) counterpart. We are probably working together to meet in person soon but our teams are already busy. Next month, the next round of talks is due,” Goyal said.
India and Britain began negotiations for an FTA in January with the aim of concluding negotiations by Diwali (October 24), but the deadline was missed due to political developments in the UK. The agreement has 26 chapters, covering goods, services, investment and intellectual property rights.
The reduction or elimination of customs duties under this agreement will help Indian labour-intensive sectors such as textiles, leather, gems and jewelery to increase exports to the UK market. The UK is seeking duty concessions in sectors such as Scotch whiskey and automobiles.
Bilateral trade between the two countries has increased to USD 17.5 billion in 2021-22 from USD 13.2 billion in 2020-21. In 2021-22, India’s exports were USD 10.5 billion, while imports were USD 7 billion.
India’s major exports to the UK include ready-made garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, transport equipment and parts, spices, metal products, machinery and equipment, pharma and marine products.
Major imports include precious and semi-precious stones, ores and metal scraps, engineering goods, professional equipment, non-ferrous metals, chemicals and machinery.
The UK is also a key investor in India. New Delhi attracted USD 1.64 billion foreign direct investment in 2021-22. Between April 2000 and March 2022, the figure was about USD 32 billion.
In the services sector, the UK is one of Europe’s largest markets for Indian IT services.
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