India Working On First Major Free Trade Pact In A Decade

The two countries have zeroed in on a list of achievable items that would help the UK showcase the benefits of leaving the European Union while also allowing India to forge new bilateral ties.

India and the UK are intensifying talks to remove non-tariff barriers and foster greater market access as they work to stitch together the South Asian nation's first major free trade pact in a decade. The two countries have zeroed in on a list of achievable items that would help the UK showcase the benefits of leaving the European Union while also allowing India to forge new bilateral ties after Prime Minister Narendra Modi's government pulled out of a multilateral Asia trade pact in 2019, according to people with the knowledge of the matter in the capital, New Delhi. They expect to finalize an interim agreement by the end of the year that would give British medical devices and agricultural products such as apples, quinces and pears access to Indian markets, while widening the scope of employment in the UK for Indian seafarers and nurses, the people said, asking not to be identified as the matter is still under discussion. Under pressure from exporters, India has been in talks over early harvest deals with the UK, U.S. and the EU -- some of its major trading partners -- but until now, only Britain has shown interest. And unlike many of India's other trade talks which have lingered for years without an outcome, there is a strong chance of a deal with the UK given the needs of both the sides, the people said, noting these negotiations have progressed much faster than others.