London: As the world watches India’s rapid ascent to becoming one of the largest economies globally, the UK is keenly focused on strengthening its economic ties with this emerging giant. The ongoing India-UK Free Trade Agreement (FTA) negotiations have clarified that student visas will not be part of the discussions, while temporary business mobility visas take center stage. This strategic focus aims to enhance trade and economic cooperation between the two nations, with British Indian peers in the House of Lords emphasizing the urgency of concluding the FTA to boost growth and jobs.
The UK government has confirmed that only temporary business mobility visas are included in the India-UK FTA negotiations. These visas are crucial for facilitating business operations and services between the two countries, benefiting UK exporters by enabling them to deliver services abroad efficiently. Meanwhile, student visas remain outside the scope of these trade talks, reflecting a clear distinction between trade and immigration policies.
A key objective of the FTA is to reduce tariffs faced by UK exporters. Notably, Indian tariffs on goods like whisky can exceed 100%, making it a priority for the UK to negotiate lower duties. The bilateral trade between India and the UK was valued at GBP 41 billion last year, supporting nearly 600,000 jobs across both economies. This underscores the potential for significant economic gains through a well-structured FTA.
Despite calls for a swift conclusion of the FTA, the UK government prioritizes securing a quality deal over rushing the negotiations. This approach ensures that any agreement will be in the best interests of the UK, reflecting a cautious yet ambitious stance in trade diplomacy.
British Indian peers in the House of Lords have urged the government to expedite the FTA process. They argue that capitalizing on India’s growing economy is crucial for the UK’s long-term economic future. With India poised to become the third-largest economy, the urgency to finalize the FTA is palpable, as peers emphasize the need for swift action to secure the UK’s competitive position in the region.
