India and the UK concluded the second round of talks for a proposed bilateral Free Trade Agreement (FTA) in London last week and exchanged notes on the trade concessions both sides were looking at, the government said on Friday.
The two sides are expected to meet again in April in Delhi for the third round of talks to explore the possibility of signing an early-harvest deal.
A section of the Indian delegation leading the discussions was housed in a dedicated UK negotiation facility, while others attended the meet virtually, the ministry of commerce and industry said. Technical experts from both countries attended 64 sessions covering 26 policy areas, it added.
The negotiations are significant considering that the UK is India’s seventh-largest export market. It accounted for 2.8% of shipments as of June 2021. While India had a $3.3 billion trade surplus in 2020-21 it has been losing market share for key products to other developing countries following the withdrawal of the Generalized System of Preferences by the UK administration.
Recently, both countries committed to more than double the UK-India trade value by 2030.
During the second round of talks, New Delhi sought duty concession for labour-intensive exports, such as textiles, besides easy market access for Indian fisheries, pharma and agricultural products. In a recent report, UK think-tank Resolution Foundation said British firms will benefit from the “first mover" advantage ahead of the European Union and the US if it concludes the FTA with India.
In February, India concluded a comprehensive economic partnership agreement with the UAE, the first bilateral trade deal signed by the Narendra Modi administration since it came to power in 2014. India is also negotiating early-harvest agreements or mini FTAs with Australia and Canada.
Meanwhile, commerce and industry minister Piyush Goyal told the Parliament on Friday that the Centre was taking steps to protect India Inc. from the fallout of Ukraine war, Western sanctions on Russia, and the surge in global commodity prices. “Various measures are being taken to ensure payments (to exporters) come on time. In terms of facilitation for importers and exporters, the government is in dialogue with all who are impacted by the Ukraine crisis," said Goyal.
ravi.dutt@livemint.com
