India, UK free trade agreement: 12th round of talks from Aug 7
India, UK free trade agreement: 12th round of talks from Aug 7 The Economic Times
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India and UK Close to Concluding Free Trade Agreement
India and the UK are close to concluding negotiations for a proposed free trade agreement (FTA), with the 12th round of talks set to take place from August 7. Both countries aim to finalize the agreement before the end of the year.
Main Issues for Discussion
- Investment treaty
- Reduction of duties on auto and whiskey
- Matters pertaining to services
The 11th round of talks was concluded last month, with Commerce and Industry Minister Piyush Goyal and Commerce Secretary Sunil Barthwal visiting London to assess the progress of the negotiations. Out of the total 26 chapters in the FTA, 19 have been closed. Investment is being negotiated as a separate agreement (bilateral investment treaty) between India and the UK, and it will be concluded simultaneously with the free trade agreement.
Rules of Origin
In the rules of origin chapters, product-specific rules are being negotiated, including value-addition norms for each product category, change in chapter heading, and certification. The ‘rules of origin’ provision prescribes minimal processing that should happen in an FTA country so that the final manufactured product may be called originating goods in that country. These norms help contain dumping of goods.
Demands and Opportunities
The Indian industry is demanding greater access for its skilled professionals from sectors like IT and healthcare in the UK market, as well as market access for several goods at nil customs duties. On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, automobiles, lamb meat, and certain confectionary items. Britain is also looking for more opportunities for UK services in Indian markets, particularly in segments such as telecommunications, legal and financial services.
Bilateral Trade and Investment
The bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22. India’s main exports to the UK include ready-made garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, transport equipment, spices, machinery and instruments, pharmaceuticals, and marine products. Main imports from the UK include precious and semi-precious stones, ores and metal scraps, engineering goods, professional instruments other than electronics, chemicals, and machinery.
In the services sector, the UK is the largest market in Europe for Indian IT services. In terms of investment, the UK is one of the top investors in India. In 2022-23, India received USD 1.74 billion in foreign direct investment from the UK, compared to USD 1 billion in 2021-22. Since April 2000 and March 2023, investments have reached USD 33.9 billion.
Free trade agreements like this aim to significantly reduce or eliminate customs duties on a wide range of traded goods between two countries, while also promoting trade in services and investments.
SDGs, Targets, and Indicators
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 8: Decent Work and Economic Growth
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 17: Partnerships for the Goals
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries.
- SDG 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.
- SDG 17.10: Promote a universal, rules-based, open, non-discriminatory, and equitable multilateral trading system under the World Trade Organization, including through the conclusion of negotiations under its Doha Development Agenda.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Gross Domestic Product (GDP) growth rate
- Investment flows between India and the UK
- Reduction of import duties on specific goods (e.g., auto, whiskey)
- Market access for skilled professionals from sectors like IT and healthcare
- Reduction of import duties on goods like scotch whiskey, automobiles, lamb meat, and confectionary items
- Increase in bilateral trade between India and the UK
- Increase in foreign direct investment (FDI) from the UK to India
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators | |||
|---|---|---|---|---|---|
| SDG 8: Decent Work and Economic Growth | SDG 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries. | Gross Domestic Product (GDP) growth rate | |||
| SDG 9: Industry, Innovation, and Infrastructure | SDG 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all. | Investment flows between India and the UK | |||
| SDG 17: Partnerships for the Goals | SDG 17.10: Promote a universal, rules-based, open, non-discriminatory, and equitable multilateral trading system under the World Trade Organization, including through the conclusion of negotiations under its Doha Development Agenda. | Reduction of import duties on specific goods | Market access for skilled professionals | Increase in bilateral trade between India and the UK | Increase in foreign direct investment (FDI) from the UK to India |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: m.economictimes.com
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