BS EDIT: India-UK FTA: Challenges and Opportunities

By Business StandardPublished On Nov 28, 2024

Why India-UK FTA Matters

India and the UK will resume FTA talks in 2024, aiming for a mutually beneficial deal to boost market access and global integration for India

Key Expectations from Both Sides

India seeks mobility for skilled labour, while the UK wants market access and lower tariffs. Bridging these gaps is key for FTA progress

Major Impediments to Progress

UK's focus on environmental and labour standards poses challenges for India, with similar issues arising in FTA talks with the European Union

Global Trade and Non-Tariff Barriers

EU’s CBAM impacts competitiveness, reflecting inward-looking policies and conflicting with shared but differentiated responsibilities in climate action

India’s Path Forward

India must protect its trade interests by lowering tariffs, improving standards, and integrating into global value chains for better opportunities

Balancing Growth with Adaptation

With 2% global export share, India must adapt to norms, reduce carbon intensity, enhance competitiveness, and prepare for impactful trade deals