An Indian delegation, led by Commerce Secretary Sunil Barthwal, is embarking on a crucial visit to London to finalize a free trade agreement (FTA) with the United Kingdom ahead of impending general elections in both countries.
Importance of the Visit
The visit gains significance due to the impending announcement of general election dates, which will invoke the Model Code of Conduct (MCC). Simultaneously, the UK is also gearing up for elections by the end of the year.
Confirmation of the Visit
A government official confirmed that Commerce Secretary Sunil Barthwal and other negotiators are scheduled to depart for the UK on February 20th, emphasizing the continued possibility of signing the India-UK FTA.
Review by Prime Minister’s Office
The Prime Minister’s Office (PMO) conducted a review of the progress in India-UK FTA talks on February 16th, indicating the high-level attention and commitment to the negotiations.
Background of FTA Talks
India and the UK commenced talks for a free-trade agreement (FTA) in January 2022, covering 26 chapters encompassing goods, services, investments, and intellectual property rights.
Indian Industry Demands
The Indian industry seeks enhanced access for skilled professionals, particularly from sectors such as IT and healthcare, in the UK market. Additionally, they are advocating for market access for various goods at zero customs duty.
UK’s Requests
The UK aims for a substantial reduction in import duties on items like scotch whiskey, electric vehicles, lamb meat, chocolates, and specific confectionery items. Furthermore, they seek expanded opportunities for UK services in Indian markets, focusing on segments like telecommunications, legal, and financial services.
Bilateral Trade Statistics
Bilateral trade between India and the UK witnessed an increase, reaching $20.36 billion in 2022-23 from $17.5 billion in 2021-22, underscoring the growing economic ties between the two nations.
Multiple Choice Questions (MCQs) with Answers:
- Who is leading the Indian delegation for the FTA talks with the UK?
- A) Prime Minister
- B) Commerce Secretary Sunil Barthwal
- C) Foreign Minister
- D) Finance Minister
- Answer: B) Commerce Secretary Sunil Barthwal
- Why is the impending visit of the Indian delegation to London significant?
- A) Due to the upcoming trade summit
- B) Ahead of the Model Code of Conduct (MCC) being invoked
- C) To finalize a cultural exchange agreement
- D) In preparation for a bilateral military exercise
- Answer: B) Ahead of the Model Code of Conduct (MCC) being invoked
- When is the Indian delegation scheduled to depart for the UK?
- A) February 16th
- B) February 18th
- C) February 20th
- D) February 22nd
- Answer: C) February 20th
- What aspect of the India-UK FTA negotiations did the Prime Minister’s Office (PMO) review?
- A) Progress in defense cooperation
- B) Status of educational exchanges
- C) Advancements in healthcare partnerships
- D) Progress of FTA talks
- Answer: D) Progress of FTA talks
- Which sectors are Indian industries advocating for greater access in the UK market?
- A) Agriculture and textiles
- B) Information Technology (IT) and healthcare
- C) Automobile and construction
- D) Energy and mining
- Answer: B) Information Technology (IT) and healthcare
- What goods does the UK aim to have import duties reduced on?
- A) Dairy products and grains
- B) Electronics and furniture
- C) Scotch whiskey and chocolates
- D) Clothing and footwear
- Answer: C) Scotch whiskey and chocolates
- Which area does the UK seek expanded opportunities for in the Indian market?
- A) Manufacturing
- B) Agriculture
- C) Telecommunications, legal, and financial services
- D) Tourism
- Answer: C) Telecommunications, legal, and financial services
- What was the total bilateral trade value between India and the UK in 2022-23?
- A) $20.36 billion
- B) $17.5 billion
- C) $30 billion
- D) $15 billion
- Answer: A) $20.36 billion